Rates did close higher in the afternoon as the bond market reacted to an active stock market. The 10-year Treasury closed +.038% at 4.689%.

Bonds with the price slightly lower, rates a bit higher as the weekly Initial Jobless Claims was lower than anticipated. This is an inverse indicator, so a rate lower than expected is good for the economy, but bad for rates. Only 321,000 workers filed unemployment insurance, while economists were expecting 325k to 329k.

The Help-Wanted Index was lower than forecast at 30, while forecasts were for 31.

TOMORROW, 27 April 2007

Friday will be a heavy day with the GDP report and the attached Chain Deflator. The Employment Cost Index is also published. Finally, The Michigan Consumer Sentiment also has a chance to impact rates.

Steve Boxmeyer [612] 799 – 6858
steve@LendWithIntegrity.com