Daily Market Update 1/4/10

Rates held steady Monday in spite of a surge in stocks and oil prices. Interest rates often rise as capital flows from fixed income securities, such as Treasuries and mortgage-backed securities, into stocks and commodities. In economic news, the Institute for Supply Management manufacturing index rose a bit more than expected in December to 55.9 from 53.6 the previous month. A reading above 50 indicates expansion. Construction Spending fell -0.6%, slightly above forecast. The most closely watched data for the month, the Nonfarm Payrolls Report, will be released Friday.