This is a big week for economic data. After Retail Sales this morning (unexpectedly +.2%), we’ll have the Producer Price Index tomorrow, expected +.4%, core +.2%, and then on Wednesday we have the Consumer Price Index, March Housing Starts, Industrial Production and Capacity Utilization, and finally Leading Economic Indicators. Expectations for future Fed eases increased slightly last week, and economists are giving a 46% chance of a 50 bp easing to 1.75% at the next FOMC meeting on April 29-30. Speaking of the Fed, they will post the Fed Beige Book report at 2PM EST Wednesday. This report, which is named simply after the color of its cover, details economic conditions throughout the U.S. by region. Since the Fed relies heavily on it during their FOMC meetings, its results can have a fairly big impact on the financial markets and mortgage rates if it reveals any surprises. After the Retail Sales number, the 10-yr languishes in the mid 3.40’s and 30-yr A-paper prices are a tad better than Friday afternoon.