Rates are moving up some this morning, most likely the bond market is preparing for a worse case scenario for Thursday’s FOMC meeting.

The 10-year Treasury is +.023% with the rate at 5.101% in late morning trading.

The economic data was close to expected, but if anything, should be moving rates lower. Both of the days major items were out at 09:00cdt {14:00gmt}.

Economists were predicting that New Home Sales would range from 900k to 930k. They were reported right in the middle of that range at 915k.

The Consumer Confidence was slightly below expectations, but gives us the strongest indication for the mid-term direction of rates. Analysts were looking for 105.0 to 106.0. The Conference Board released the number at 103.9.

Lynn Franco, Director of The Conference Board Consumer Research Center said, "A perceived softening in present-day business and employment conditions are the major reasons behind this month's pull-back in confidence. In fact, the Present Situation Index now stands at levels not seen since the final quarter of last year. Looking ahead, consumers remain rather subdued about short-term economic prospects. All in all, the glass remains half empty and half full."

Consumers' appraisal of present-day conditions was less upbeat in June. Those claiming conditions are "good" declined to 27.4 percent from 29.0 percent. Those saying conditions are "bad" increased to 16.4 percent from 14.6 percent. Consumers were also less positive about the job market.

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