Reply #26: US Treasuries rise on tame PPI, trade gap narrows [View All]

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-09-13T130818Z_01_N13324243_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Sept 13 (Reuters) - U.S. Treasury debt prices rose on Tuesday on tamer-than-expected core producer prices in August, suggesting increases in energy prices before Hurricane Katrina were not yet fueling inflation across the economy.

The U.S. government, in a report that covers a period preceding the hurricane, said the core PPI was unchanged in August, lower than the 0.1 percent increase economists had expected. The core PPI rose 0.4 percent in July. The core rate excludes volatile energy and food components.

The overall PPI, which includes energy costs, rose 0.6 percent in August. But that was below economists' expectations of a 0.8 percent increase and July's 1.0 percent increase.

"Inflation is very contained. It's not going anywhere. Because they will cook those reports. The Fed is little too worried about the wrong thing. I'm more worried about growth," said Robert Brusca, chief economist at Fact and Opinion Economics in New York.

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