- Last Updated Tue, May 29, 2007 at 11:59 PM EST - by Rob Hain

Consumer Confidence Back Up
In the second recent consumer behavior report to show improvement despite rising energy prices, Consumer Confidence rebounded to 108.0 in May from the previous revised reading of 106.3. Analysts said that job market optimism drove most of the increase. Consumer spending is said to drive the vast majority of the economy, so improvement like was seen on Tuesday usually will have some impact on markets. In fact, MBS and Treasury yields did increase on the day. The 10-year Treasury yield was up to 4.88% by the end of the day.

The next release will be the FOMC Meeting Minutes at 2:00 Eastern on Wednesday.

- Last Updated Fri, May 25, 2007 at 8:07 PM EST - by Rob Hain

Existing Home Sales Down
The report for Existing Home Sales showed another decline - this time by 2.6% to an annual rate of 5.99 million homes. Some analysts saw hope in the decline, pointing out that the rate of decline is slowing, thought the trend continues.

Yields Push Up Slightly in Short Session
Though there was the expected volatility of a short holiday session, bond yields did not move very far. MBS and Treasury yields pushed up slightly before the early close. The 10-year Treasury yield was up to 4.86% by the weekend start. Consumer Confidence is the next piece of data, due out Tuesday at 10:00 Eastern.

News:

Housing Market Decline Eases

- Last Updated Fri, May 25, 2007 at 8:59 PM EST - by Rob Hain

Tuesday
Consumer Confidence is due out at 10:00 Eastern.

Wednesday
The day starts with Gross Domestic Product at 8:30 Eastern, followed at 2:00 by the minutes from the latest FOMC meeting.

Thursday
Weekly Jobless Claims are due out at their usual 8:30 Eastern time, followed at 9:45 by the Chicago PMI and Construction Spending at 10:00.

Friday
The week finished strong with the Jobs report, Personal Income/Spending, and the Core PCE at 8:30 Eastern. At 10:00, the Pending Home Sales Index comes out, along with the ISM Manufacturing Index and Consumer Sentiment.

- Last Updated Fri, May 25, 2007 at 8:51 PM EST - by Rob Hain

During the light economic news week of May 21, the 10-year Treasury yield moved up six basis points, ending the week at 4.86%.

Monday
No data was released. 10TSY close: 4.79%

Tuesday
No data was released. 10TSY close: 4.83%

Wednesday
No data was released. 10TSY close: 4.86%

Thursday
Jobless Claims ticked upward, but the four-week average moved down again. Durable Goods Orders grew, but barely. New Home Sales surged, ending a steady decline trend. 10TSY close: 4.86%

Friday
Existing Home Sales fell back. 10TSY close: 4.86%