Daily Market Update 6/13/08

Rates were little changed following Friday’s release of the Consumer Price Index for May. While prices climbed 0.6% for the month (4.2% for the past 12 months), the “core” rate, excluding volatile food and energy prices, increased 0.2% as forecast. Global inflation fears pushed mortgage rates to their highest levels of the year this week. Tough talk concerning inflation by several Fed officials, including Chairman Ben Bernanke, raised expectations of central bank rate increases in coming months. The dollar continued its trend higher against the euro and yen. Next Tuesday will be an active day for economic news with the scheduled release of the Producer Price Index, Housing Starts, and Industrial Production.

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