The RateWatch
 Commentary by Bill Brizendine of Melody Capital MarketsAfter dropping down below 4.55% early in the week, the yield on the 10-year UST began to inch up. Rising consumer confidence, an increase in new home sales, anticipation of an August core inflation exceeding the Fed’s “comfort zone”, and a general feeling that yields just aren’t high enough to attract investors resulted in a Friday close at 4.63%, up 4 bps for the week. Through mid-day trading today, however, the 10-year was regaining some strength with yields retreating to just over 4.60% in the wake of a report by the ISM that factory production was down more than anticipated. On the other hand, pending home sales and construction spending were up more than forecast. There seems to be data to support a rationale for movement of rates up or down, but this morning’s bias is toward further Fed restraint . . . go figure. Download The RateWatch: A one-page analysis of institutional lending rates |