8/14/09

As summer winds down, with vacations increasing and “out of office” replies multiplying, we had the Consumer Price Index news this morning. The CPI was unchanged in July, as expected, and over the last year has fallen by over 2% - the most since 1950. Ex-food and energy, since no one uses either of those, the core rate was +.1%, as expected. The bond market liked the news, and is rallying: mortgage prices are better this morning. Expect a typical summer Friday in the financial markets…