Daily Market Update 8/18/09

Rates were little changed Tuesday. The July Producer Price Index showed a decline of 0.9% from June, and 6.8% year-over-year, indicating that inflation is not a concern in the short term. Housing Starts fell unexpectedly, led by a decline in multi-family units. Building Permits, a leading indicator, fell short of consensus forecast. Stocks moved modestly higher. No other economic data will be released today.