DATE: Tuesday 03/18/2008 at 10:27 AM (Eastern)
Rates bounced up from lows this morning as stocks turned sharply higher. A market reversal has taken place as investors moved out of debt markets into equities. Housing Starts reported at 1,065,000, stronger than expectations of 975,000. Building Permits reported at 978,000, under expectations of 1,200,000. The Producer Price Index reported as expected at 0.3%. The Core Rate (excluding food and energy) reported at 0.5%, above expectations of 0.2%.
The Fed releases its monetary decision today at 2:15 EST. The market anticipates a cut of 1/2 to 1 point. Upward rate pressure exists this morning as they continue to increase off of longer-term lows. Lock Triggers: 10-yr. Note Conservative 3.63%, Aggressive 3.71%.
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