Inflation Concerns Keep Rates Up
5 March 2008
Rates were sharply up today as bonds dropped over 100 basis points by the afternoon. Rates will have increased by at least 50 basis points today.
The focus in the markets today was inflation concerns in the Fed Beige Book and the ISM Services Index. The latter came in higher than expected, suggesting a recovery in the services sector of the economy. Q4 Productivity and Factory Orders from January data did not affect trading.
The Beige Book reported both weakening economic conditions as well as upward price pressure, in most regions of the country. This inflation concern helped the bond to sell off after the 2pm Beige Book release.
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