Tuesday, May 15, 2007

TREASURIES-Bonds flat ahead of April inflation data

(Reuters) - The Fed maintained in a statement last week that core inflation, which does not include volatile food and energy costs, remains "somewhat elevated", and that inflation still presents a greater risk than slower economic growth.

But there has been some evidence that inflation pressures are easing, including a flat reading last week on the core Producer Price Index for April. If inflation were to slow to a level the Fed finds comfortable, the central bank could move to cut benchmark interest rates to stimulate the economy.


Read more at Reuters.com Bonds News

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