Rates held steady Tuesday as stronger than expected economic data was offset by concerns over rising bank losses. The Institute for Supply Management index showed manufacturing expanded for the first time in 19 months. Pending Home Sales increased 3.2% in July, led by low interest rates, distressed sales, and tax incentives for buyers. Construction Spending fell 0.2%, in line with forecast. Stocks fell sharply on growing concerns over bank failures. Last week the FDIC raised its list of problem banks to 416, from 305 three months earlier. Total assets of the banks on the list was nearly $300 billion, while the fund to insure deposits fell to $10.4 billion. The FDIC may soon need to borrow from the Treasury to repay bank depositors. Minutes from last month’s FOMC meeting of the Fed will be released tomorrow.