Daily Market Update 5/13/09

Mortgage rates were little changed Wednesday, as Treasuries outperformed mortgage-backed securities following weaker than expected Retail Sales data. Stocks fell sharply. April Retail Sales declined -0.4%, below the consensus forecast of -0.1%. Consumers have reduced spending due to uncertainty about the economy and rising unemployment. Separately, Import Prices excluding oil declined -0.4%, easing inflation fears. The Producer Price Index will be released tomorrow.