Rates End Week Even. Slightly Above 2011 Low.

After some extreme volatility, rates are set to end the week at the same low levels they began. Not quite at 2011 lows set June 8, but in line with our prediction of “even to slightly down” rates. Below is a quick recap and preview of next week.

Manufacturing reports from New York and Philadelphia regions showed weaker activity and inflation backing off a bit. Consumer and Producer price reports also showed low inflation. And Greece had another citizen uprising Wednesday as they explore wage cuts and tax hikes as compromises in its ever-expanding bailout.

Stocks are technically positioned for a rise and the latest in Greece’s bailout provides a bit of fuel today. If this rally continued, rate could rise a bit as bonds sell. Next week’s data on housing and GDP, Fed meeting, and news out of Europe will be the catalysts for bond and rate movement. Tomorrow’s WeeklyBasis report will lay it out in more detail. Happy Friday!