Like Friday there was no important data today.

There was very little activity in the bond market. The 10-year Treasury closed +.008% at 4.964%.

SHORT-TERM OUTLOOK [23 July 2007]

A trading range has emerged around the 5.100% level on the 10-year Treasury. The floor is around the psychological 5.000%. The ceiling looks as if it is just above the Fed Funds rate at 5.250%. The recent high occurred on 12 June at 5.297%. The low around 5.040% has been tested on a few occasions, most recently today.

That trading range was tested on 18 July 2007. At one point the 10-year Treasury was at a low of 4.991%. The price on Treasuries gained that Wednesday after Federal Reserve Chairman Ben S. Bernanke predicted in congressional testimony that inflation will recede and said housing market weakness may slow the world's largest economy

The Trading Range was broken on 20 July with the 10-year Treasury closing -.076% with the rate at 4.952%.

Like much of the week, Tuesday is short of Data, the same Monday was. There are some minor items. The Redbook Retail Survey and the UBS Store Sales Index are weekly numbers that point toward trends in retail Sales. The monthly State Street Investor Survey does impact rates on very rare occasion.

Finally, St. Louis Federal Reserve Bank President William Poole (FOMC voting member) to speak about energy and the U.S. macroeconomy at the Wilmington Club in Wilmington, Del. But the speech is given at 16:30cdt {4:30p.m., 21:30gmt}

Wednesday is the first day of the week an important item is released; Existing Home Sales.

Thursday does have the Durable Goods Orders which can impact rates. The New Home Sales number is published. The weekly Initial Jobless claims may move rate the way it did last week.

Unlike last week, this Friday has some valuable numbers out. The first read of last month’s GDP and the attached Chain Deflator. The U of Mich. Consumer Sentiment Report is also published.

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