Benanke Says No Recession, Rates Up

Stock Markets posted losses in trading this morning, and mortgage rates sank as well, with retail mortgage rates up about .375 to the points over yesterday. December's Goods and Services Trade Balance report came in lower than expected but does not have much influence on mortgage rates. Weekly jobless claims posted lower than expected, but this report too, since it covers only a week of data has minimal impact on bond trading. Fed Chair Bernanke spoke to the Senate today with Treasury Secretary Paulson. They made the unexpected forecast that there would be no recession this year, despite the economic problems that are occuring, primarily in the housing sector. It was this testimony that has impacted trading today. Tomorrow we'll get January Industrial Production data, measuring the health of the manufacturing sector of the economy. January's preliminary ready of the Index of Consumer Sentiment will be released tomorrow as well by the University of Michigan, and measures consumer confidence. Both reports could affect rates.

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