Monday Market Commentary

by Alex Stenback on April 18, 2005

‘Old Cedar Avenue Bridge’ over the Minnesota River, Visual Gratification

Last Week: Rates Fell
Though trading was relatively quiet throughout most of the week, mortgage bonds rallied nicely Tuesday as traders parsed the minutes from the last Fed meeting, which suggested the Fed will remain moderate (.25% at a time versus and accelerated .5%) in its rate increases.
This Week:  CPI
The Consumer Price Index, widely accepted as the most important measure of inflation, is being released Wednesday. This will be the big number to watch as traders and other market participants look for direction.  An Inflation friendly figure may lead to lower rates.  Any guesses as to what might happen if the CPI shows consumer prices have spiked?
ยทThis Week’s Economic Calendar

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