Bond markets have continued to heal after dodging a...

"Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved. For example, one participant argued that purchases should vary incrementally from meeting to meeting in response to incoming information about the economy. "

"A number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred. Several others argued that the potential costs of reducing or ending asset purchases too soon were also significant, or that asset purchases should continue until a substantial improvement in the labor market outlook had occurred. "

" A few participants noted examples of past instances in which policymakers had prematurely removed accommodation, with adverse effects on economic growth, employment, and price stability; they also stressed the importance of communicating the Committee's commitment to maintaining a highly accommodative stance of policy as long as warranted by economic conditions. In this regard, a number of participants discussed the possibility of providing monetary accommodation by holding securities for a longer period than envisioned in the Committee's exit principles, either as a supplement to, or a replacement for, asset purchases. "

Fannie 3.0s dipped to 102-20 at their weakest levels...

While this could just be the "knee-jerk," it's too...

Equities were sold at 11am to cover shorts in bond...

With the exception of a few moments on 2/14, 10yr yields...

- January PPI +0.2 vs +0.4 consensus
- Core PPI +0.2 vs +0.2 consensus
- Energy Prices Fell (gas -2.1, heating oil -0.5)
- Food +0.7, Labor Dept. says 'more than 3 quarters of the rise in January PPI is attributable to increase in food prices.'

The Producer Price Index for finished goods advanced 0.2 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods declined 0.3 percent in December and 0.4 percent in November. At the earlier stages of processing, the index for intermediate goods was unchanged in January, and crude goods prices increased 0.8 percent. On an unadjusted basis, the finished goods index advanced 1.4 percent for the 12 months ended January 2013.

- Headline Starts -8.5 vs +15.7 last time
- 890k Unit rate vs 925k Consensus
- Permits 925k vs 915k Consensus
- Single-Fam Starts +0.8 to 613k. Highest since June 2008

Privately-owned housing starts in January were at a seasonally adjusted annual rate of 890,000. This is 8.5 percent (±11.3%)* below the revised December estimate of 973,000, but is 23.6 percent (±13.4%) above the January 2012 rate of 720,000.

Single-family housing starts in January were at a rate of 613, 000; this is 0.8 percent (±11.7%)* above the revised December fig ure of 608,000. The January rate for units in buildings with five units or more was 260,000

Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 925,000. This is 1.8 percent (±0.9%) above the revised D ecember rate of 909,000 and is 35.2 percent (±1.5%) above the January 2012 estimate of 684,000.

Single-family authorizations in January were at a rate of 584, 000; this is 1.9 percent (±0.8%) above the revised December figur e of 573,000. Authorizations of units in buildings with five units or more were at a rate of 311,000 in January.

- Headline Starts -8.5 vs +15.7 last time
- 890k Unit rate vs 925k Consensus
- Permits 925k vs 915k Consensus
- Single-Fam Starts +0.8 to 613k. Highest since June 2008

Privately-owned housing starts in January were at a seasonally adjusted annual rate of 890,000. This is 8.5 percent (±11.3%)* below the revised December estimate of 973,000, but is 23.6 percent (±13.4%) above the January 2012 rate of 720,000.

Single-family housing starts in January were at a rate of 613, 000; this is 0.8 percent (±11.7%)* above the revised December fig ure of 608,000. The January rate for units in buildings with five units or more was 260,000

Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 925,000. This is 1.8 percent (±0.9%) above the revised D ecember rate of 909,000 and is 35.2 percent (±1.5%) above the January 2012 estimate of 684,000.

Single-family authorizations in January were at a rate of 584, 000; this is 1.9 percent (±0.8%) above the revised December figur e of 573,000. Authorizations of units in buildings with five units or more were at a rate of 311,000 in January.

Bond markets have continued to heal after dodging a...

"Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved. For example, one participant argued that purchases should vary incrementally from meeting to meeting in response to incoming information about the economy. "

"A number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred. Several others argued that the potential costs of reducing or ending asset purchases too soon were also significant, or that asset purchases should continue until a substantial improvement in the labor market outlook had occurred. "

" A few participants noted examples of past instances in which policymakers had prematurely removed accommodation, with adverse effects on economic growth, employment, and price stability; they also stressed the importance of communicating the Committee's commitment to maintaining a highly accommodative stance of policy as long as warranted by economic conditions. In this regard, a number of participants discussed the possibility of providing monetary accommodation by holding securities for a longer period than envisioned in the Committee's exit principles, either as a supplement to, or a replacement for, asset purchases. "

Fannie 3.0s dipped to 102-20 at their weakest levels...

While this could just be the "knee-jerk," it's too...

Equities were sold at 11am to cover shorts in bond...

With the exception of a few moments on 2/14, 10yr yields...

- January PPI +0.2 vs +0.4 consensus
- Core PPI +0.2 vs +0.2 consensus
- Energy Prices Fell (gas -2.1, heating oil -0.5)
- Food +0.7, Labor Dept. says 'more than 3 quarters of the rise in January PPI is attributable to increase in food prices.'

The Producer Price Index for finished goods advanced 0.2 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods declined 0.3 percent in December and 0.4 percent in November. At the earlier stages of processing, the index for intermediate goods was unchanged in January, and crude goods prices increased 0.8 percent. On an unadjusted basis, the finished goods index advanced 1.4 percent for the 12 months ended January 2013.

- Headline Starts -8.5 vs +15.7 last time
- 890k Unit rate vs 925k Consensus
- Permits 925k vs 915k Consensus
- Single-Fam Starts +0.8 to 613k. Highest since June 2008

Privately-owned housing starts in January were at a seasonally adjusted annual rate of 890,000. This is 8.5 percent (±11.3%)* below the revised December estimate of 973,000, but is 23.6 percent (±13.4%) above the January 2012 rate of 720,000.

Single-family housing starts in January were at a rate of 613, 000; this is 0.8 percent (±11.7%)* above the revised December fig ure of 608,000. The January rate for units in buildings with five units or more was 260,000

Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 925,000. This is 1.8 percent (±0.9%) above the revised D ecember rate of 909,000 and is 35.2 percent (±1.5%) above the January 2012 estimate of 684,000.

Single-family authorizations in January were at a rate of 584, 000; this is 1.9 percent (±0.8%) above the revised December figur e of 573,000. Authorizations of units in buildings with five units or more were at a rate of 311,000 in January.

- January PPI +0.2 vs +0.4 consensus
- Core PPI +0.2 vs +0.2 consensus
- Energy Prices Fell (gas -2.1, heating oil -0.5)
- Food +0.7, Labor Dept. says 'more than 3 quarters of the rise in January PPI is attributable to increase in food prices.'

The Producer Price Index for finished goods advanced 0.2 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods declined 0.3 percent in December and 0.4 percent in November. At the earlier stages of processing, the index for intermediate goods was unchanged in January, and crude goods prices increased 0.8 percent. On an unadjusted basis, the finished goods index advanced 1.4 percent for the 12 months ended January 2013.

- Headline Starts -8.5 vs +15.7 last time
- 890k Unit rate vs 925k Consensus
- Permits 925k vs 915k Consensus
- Single-Fam Starts +0.8 to 613k. Highest since June 2008

Privately-owned housing starts in January were at a seasonally adjusted annual rate of 890,000. This is 8.5 percent (±11.3%)* below the revised December estimate of 973,000, but is 23.6 percent (±13.4%) above the January 2012 rate of 720,000.

Single-family housing starts in January were at a rate of 613, 000; this is 0.8 percent (±11.7%)* above the revised December fig ure of 608,000. The January rate for units in buildings with five units or more was 260,000

Privately-owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 925,000. This is 1.8 percent (±0.9%) above the revised D ecember rate of 909,000 and is 35.2 percent (±1.5%) above the January 2012 estimate of 684,000.

Single-family authorizations in January were at a rate of 584, 000; this is 1.9 percent (±0.8%) above the revised December figur e of 573,000. Authorizations of units in buildings with five units or more were at a rate of 311,000 in January.

"Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved. For example, one participant argued that purchases should vary incrementally from meeting to meeting in response to incoming information about the economy. "

"A number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the Committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred. Several others argued that the potential costs of reducing or ending asset purchases too soon were also significant, or that asset purchases should continue until a substantial improvement in the labor market outlook had occurred. "

" A few participants noted examples of past instances in which policymakers had prematurely removed accommodation, with adverse effects on economic growth, employment, and price stability; they also stressed the importance of communicating the Committee's commitment to maintaining a highly accommodative stance of policy as long as warranted by economic conditions. In this regard, a number of participants discussed the possibility of providing monetary accommodation by holding securities for a longer period than envisioned in the Committee's exit principles, either as a supplement to, or a replacement for, asset purchases. "