Jan 24 2009

Effect of Economic Data on Rates

The number of + symbols indicate the potential effect on interest rates. 

+ minimal effect
+++++ maximal effect
economic event Effect on
Interest Rates
Significance of event
Consumer Price Index (CPI) Rises +++++ Indicates rising inflation.
Dollar rises + Imports cost less indicates falling inflation.
Durable Goods Orders Increase +++ Indicates expanding economy
Gross Domestic Product Increases +++++ Indicates strong economy
Home sales increase +++ Indicates strong economy
Housing Starts Rise +++ Indicates strong economy
Industrial Production Rises +++ Indicates strong economy
Business Inventories Rise +++ Indicates weak economy
Leading Indicators (LEI) Increase +++ Indicates strong economy
Personal Income Rises + Indicates rising inflation
Personal Spending Rises + Indicates rising inflation
Producer Price Index Rises +++++ Indicates rising inflation
Retail Sales Increase ++ Indicates strong economy
Treasury auction has high demand + High demand leads to lower rates
Unemployment Rises +++++ Indicates weak economy

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