In The News...

The Institute for Supply Management released its findings for the U.S. service industry and for the third consecutive month there was a contraction in one of the largest segments of the employment picture. The non-manufacturing index rose to 40.7 when economists were looking for a reading of 37.0. Readings below 50 signal contraction, and this month's reading is the second lowest since records started in 1997.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0% to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3% below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

The last set of the Fed's FOMC minutes from their landmark December 16 meeting will attract intense interest from the bond market when released at 2:00 p.m. ET. The minutes are expected to reflect FOMC member concerns about the economy and the discussion that took place leading to the policy decision to cut the Fed funds target rate to zero percent.

In an unprecedented move, Toyota Motor will be suspending production at all 12 of its Japan plants for 11 days over February and March as worldwide demand decreases. The last time Toyota stopped production at all its Japan plants was in August 1993, when demand plunged because of a rising yen, and that was for only one day, according to the company.

Brought to you, courtesy of The Mortgage Market Guide