9/16/09

Hello. This morning we have already had the Consumer Price Index. Later on we will see Industrial Production and Capacity Utilization. U.S. consumer prices in August were slightly faster than expected and after being flat in July. As anyone with a car knows, gasoline was the primary culprit – it was up over 9%. The core CPI was +.1%. Year-over-year, however, the CPI is still down 1.5%, and “experts” think that continued weakness in the labor market and modest consumer spending will keep price pressures in check for a while. After the news 30-yr mortgage prices are slightly better

Nothing else on the calendar today for economic reads. The bond and mortgage markets remain technically positive,