Daily Market Update 2/1/10

Rates held steady Monday on mixed economic data. Personal Income rose 0.4% in December, in line with forecast. The personal savings rate for 2009 was 4.6%, the highest level since 1998. Core PCE, the Fed’s preferred measure of inflation, rose at a tame 1.5% annual rate. The Institute for Supply Management manufacturing index came in at 58.4, above expectations. Construction Spending fell 1.2%, more than forecast. The Obama Administration sent Congress a $3.8 trillion budget that includes a record $1.56 trillion deficit. Investors are becoming increasingly concerned over the volume of government-issued debt, which may cause upward pressure on interest rates.

Leave a Reply

Your email address will not be published.

Back to top