Bonds closed with a higher price as the bond market responded to positive demand for treasury auctions. The rate on the 10-year Treasury – which trades in opposite direction to price -- closed -.022 with the rate at4.650%. There were no other economic events driving rates.

TOMORROW, 24 April 2007

Tuesday’s economic calendar does not come to life until 09:00. An important and volatile economic event comes out at that time; Consumer Confidence. Analysts are expecting Consumer Confidence to be lower than last month’s 107.2, with expectations at 104.9 to 105.0. That tight of a spread of guesses could bring some volatility. Someone, if not everyone will be surprised. Our concern is that the surprise will be bad for rates. Is consumer pessimism growing?

Existing Home Sales will probably be the most watched tomorrow morning as all markets try to continue gauging the condition of the residential real estate market. Predictions are 6.40M to 6.69M units to be sold, lower than the 6.89M sold last month.

[Publisher’s note: In an attempt to clean up our blog, we will post all three outlooks on Monday only. We will post an outlook on days when one is modified.]

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