FNMA 4.5% UP another 9 bps...and trading at $100.88 30 year rates are still fantastic in the 5% range.
Dow is Down 50 points...as investors cash in.
Dollar STILL floating down in value against other currency. Domestic policy promises a continued deterioration in value.
I am not a conspiracy person...but this almost seems intentional. The fact that the de-valued dollar is not turning up inflation flags (see PPI below) suggests that somehow the HARD costs to produce goods (energy price declines based on global reduced demand) are actually keeping UP with the decline in dollar value. This is keeping things looking "even" or "tame" for now.
We are seeing now the value of Oil come up as perception of demand goes up...and the dollar weakens. Strangely, it is not going up at the same rate the dollar is going down in value. Oil topped $80 before settling at just less than that for the session. ($79.30)
The Producer's Price Index came in lower than expected today. This index shows the cost to produce goods and a lower reading means goods are cheaper to produce...and in theory will keep prices low as these goods and services "hit the shelves." It is an indication of "future" inflation.
*$8000 tax credit! Obama administration to decide in the next few weeks if the $8000 tax credit will continue...and we may have an idea of what it will look like.
Cheers,
