This was a slow economic news week. The First quarter productivity number was revised to-0.6%; yes, shrinking, not expanding, and the unit labor costs revised to 4.5%.

Yes: it is costing more to produce something (employee, insurance etc. costs). This was mild news,  and though negative for the economy, positive for mortgage rates.

This boosted the bond yields up a bit. The next day bond yields went down for no apparent reason, though the weekly jobless claims went down 4000 to 264,000.

 That was it for the week: a teeter here and a totter there.

My belief is that everything is quiet ahead if the FOMC meeting next week the 14 and 15th with the anticipated announcement of whether the “Gang of 12” will raise the Fed funds rate ( and therefore the prime rate).

It is widely expected that they will not, and most eyes are on the vote 8 days later of whether Britain will decide to exit the EU. This will most probably keep interest rates here even.