Daily Market Update 8/1/11

Rates moved lower Monday on weaker than expected economic data and optimism over a proposed debt ceiling increase.  The proposal calls for about $2.4 trillion in spending cuts over 10 years.  If passed, it’s not clear whether the deficit reduction would be enough to prevent a downgrade in the credit rating of the US.  In economic news, the Institute for Supply Management manufacturing index fell to 50.9, far below forecast.  Readings above 50.0 indicate expansion in the manufacturing sector of the economy.  Construction Spending rose 0.2%, in line with expectations.  No other key data will be released today.

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