Rates Up on Weak Dollar; International Inflation Concerns

Bonds are down over international concerns about the weak dollar and US inflation. Rates will rise today approximately .25 to the points. The Institute for Supply Management (ISM) index came in weaker than expected for February. This is usually good for bonds, however this morning's market is reacting more to international financial market concerns over the weak dollar and mounting US inflation. The next report due for release is the Productivity Index for Q4 07 which measures employee productivity, and Factory Orders, due Wednesday which shows manufacturing productivity. The Fed Beige Book will be release also on Wed, which gives regional detail on the status of the economy. The most important will be the Unemployment Report for February, due out Friday. The market has largely priced in a weaker than expected report, so we could see rates jump up if it comes in differently.

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15 Year Fixed   5.73
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