Last Updated: 12/14/2007

Friday's bond market has opened in negative territory again following another round of stronger than expected economic data. The stock markets are also reacting negatively to the news with the Dow down 42 points and the Nasdaq down 2 points. The bond market is currently down 6/32, which with yesterday's further losses during late trading, will likely push this morning's mortgage rates higher by approximately .250 - .375 of a discount point. The Labor Department said this morning that November's Consumer Price Index (CPI) rose 0.8% while the core data reading rose 0.3%. Both of these readings exceeded forecasts, but the variance was minimal compared to yesterday's surprises in the PPI. Still, the higher than expected inflation readings at the consumer level of the economy does brings concern about inflation in the economy. This had led to this morning's selling in bonds.