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May 11, 2012

Inflation Contained. Consumers More Confident. Record Rates.

May 11, 2012

Inflation Contained. Consumers More Confident. Record Rates.

Rates are still holding near record levels as mortgages recovered from slight losses yesterday and the benchmark Fannie 3.5% coupon is up 14 basis points to 104.08 today.

Below is today’s data recap, and more commentary in WeeklyBasis recap/outlook this weekend.

PPI (April 2012)
– PPI, Month/Month -0.2%
– PPI, Year/Year +1.9%
– Core PPI (less food & energy), Month/Month +0.2%
– Core PPI (less food & energy), Year/Year +2.8%

Lower oil prices brought down overall PPI and core is right about where the Fed wants.

This is a chart of year/Year core (bars) and overall (line)

University of Michigan Consumer Sentiment (May 2012)
– Level 77.8. Previous was 76.4. Consumers say they are ready to spend.

$TLT, $TNX, $TYX, $MBB