Daily Market Update 7/21/08

Rates were little changed Monday following a rough week ending July 18. Last week, global inflation fears hurt the bond and mortgage-backed securities markets. Additional pressure was applied to rates as stocks surged following a drop in oil prices from about $147 per barrel to about $129, causing funds to move out of fixed income securities and into stocks. During his testimony before Congress, Fed Chief Bernanke described the inflation outlook as “unusually uncertain”. 30-year fixed rates are now at their highest levels since last August. The economic calendar will be lighter this week, with the most significant report due out Friday on Durable Goods Orders.

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