- Last Updated Thu, May 17, 2007 at 4:30 PM EST - by Rob Hain

Jobless Claims Continue Downward
Surprising many, Weekly Jobless Claims improved once again on Thursday, surprising many. Initial claims fell to 293,000 - their lowest in four months. The four-week moving average pulled down a sharp 12,000 to 305,500.

Leading Indicators Decline
The Conference Board`s report on Leading Economic Indicators declined 0.5% on Thursday. While the report is mostly old data and rarely a surprise, analysts had expected to see the numbers fare a little better. The only positive indicators in the report were stock prices and the money supply.

Philadelphia Manufacturing Improves
Philly area manufacturing showed an improvement in May, with the Philadelphia Fed Index at 4.2, compared with the previous nearly-flat reading of 0.2. Analysts report that factories are rebounding due to foreign orders.

Bonds Yields Up
MBS and Treasury prices both traded with higher yields on Thursday than they did on Wednesday. Just after 12:00 Eastern on Thursday, the 10-year Treasury yield was floating around 4.74%, moving up to 4.76% by closing.

The next release will be Consumer Sentiment at 10:00 Eastern on Friday.

News:	U.S. Initial Jobless Claims Fall 5,000 to 293,000 - Bloomberg
News:	U.S. leading indicators point to slower growth - MarketWatch
News:	Philadelphia-Area Manufacturing Accelerated in May - Bloomberg

- Last Updated Wed, May 16, 2007 at 11:59 PM EST - by Rob Hain

Housing Starts Up, Permits Down
The report on Housing Starts showed a 2.5% increase, taking the annual rate to 1.528 million in April. It is the highest reading of the year. Building permits, on the other hand, declined by 8.9% in April to their lowest annual rate in nearly ten years - 1.429 million.

Production Up, Capacity Tighter
Wednesday`s report on Industrial Producation and Capacity Utilization revealed that production increased 0.7% in April. Capacity utilization rose to 81.6% - still over the 80% benchmark. Strained capacity is thought by many to put pressure on prices.

Bonds Flat
MBS and Treasury prices held steady on Wednesday. The mixed news appeared to have little effect. By the end of trading, the 10-year Treasury yield was at the previous day`s closing level of 4.71%.

The next data release will be Weekly Jobless Claims at 8:30 Eastern on Thursday.

News:	Housing Slump May Linger, Production Up - Bloomberg
News:	U.S. April industrial production up 0.7% - MarketWatch

- Last Updated Fri, May 11, 2007 at 11:59 PM EST - by Rob Hain

Tuesday
The Consumer Price Index is due out at 8:30 Eastern, along with the NY Empire State Index

Wednesday
Housing Starts open the day at 8:30 Eastern, followed closely by Industrial Production and Capacity Utilization at 9:15.

Thursday
Weekly Jobless Claims are due out at their usual 8:30 Eastern time, followed later by the Philadelphia Fed Index.

Friday
The University of Michigan Consumer Sentiment Survey is Friday`s only scheduled release, due out at 10:00 Eastern.

- Last Updated Fri, May 11, 2007 at 11:59 PM EST - by Rob Hain

During the moderate economic news week of May 7, the 10-year Treasury yield moved up slightly, ending the week at 4.67%.

Monday
No data was released. 10TSY close: 4.64%

Tuesday
No data was released. The 10-year auction drew a reasonable demand. 10TSY close: 4.63%

Wednesday
The FOMC held short-term rates steady, but their release was lacking the softer inflation stance that many had expected. 10TSY close: 4.67%

Thursday
Import prices were up 0.2% ex-auto, and Weekly Jobless Claims fell once again. The trade deficit grew once again to $63.9 billion. 10TSY close: 4.65%

Friday
Producer prices pushed was ahead overall, but remained flat without food and energy components. Retail sales fell 0.2% overall, but held flat once auto-related purchases were excluded. 10TSY close: 4.67%