Market Update 7/22/2008

By
Mortgage and Lending with CYPRESS MORTGAGE

Treasuries fell as Treasury Secretary Henry Paulson predicted lawmakers will pass a

bill to shore up confidence in Fannie Mae and Freddie Mac and traders prepared for

the sale of $58 billion in government debt this week. Bonds extended losses after

Federal Reserve Bank of Philadelphia President Charles Plosser said the central bank

should raise interest rates ``sooner rather than later'' to lower inflation and prevent

future-price expectations from getting out of control. The yield on the 10-year note

advanced 2 basis points, or 0.02 percentage point, to 4.06 percent at 8:41 a.m. in New

York, according to BGCantor Market Data. The 3.875 percent security due May 2018

fell 5/32, or $1.56 per $1,000-face amount, to 98 1/2. The two-year note yield rose 5

basis points to 2.63 percent. The market is relatively unchanged.

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