8/5/09

Yesterday we had the Personal Income and Consumption numbers, which in turn are used in helping calculate the savings rate here in the US. The savings rate is closely monitored by economists, and, although last month it dropped, lately it has been increasing. If savings rates continue to increase, however, the economic recovery will be slower than the forecasts.
What is going on with interest rates? Well, rates began yesterday in decent shape, but once the Pending Home Sales numbers came out, and rates sagged (i.e., prices worsened). There is some speculation that the unemployment data that is announced on Friday will be weaker than expected, although it is not really helping us rate-wise. (Non-farm Payroll is expected to be down about 325k.) For economic news, later this morning we’ll see the ISM Non-Manufacturing Index, along with Factory Orders. We will also have the Treasury Department announced their auction totals for next week, when they’ll be selling 3, 10, and 30-yr securities. As always, stay tuned.