Daily Market Update 8/14/12

Rates moved higher Tuesday as stronger than expected economic data hurt mortgage-backed securities.  July Retail Sales rose 0.8%, well above the consensus forecast of 0.2%.  The Producer Price Index (PPI) increased 0.3% last month, above expectations, while the Core PPI, which excludes volatile food and energy components, jumped 0.4%.  No other key data will be released today.