Gary Siegel

The exit strategy principles the Federal Open Market Committee suggested in June 2011 are still valid, and Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser said Tuesday, especially using the federal funds rate as the main policy instrument.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were lower, as the three-months incurred a 0.055% high rate, down from 0.065% the prior week, and the six-months incurred a 0.090% high rate, off from 0.095% the week before.

The Treasury Department said Monday it will sell $45 billion of four-week discount bills Tuesday.

Builders' confidence in the market for new single-family homes slipped as the National Association of Home Builders' housing market index fell to 42 in April from 44 in March.

The Empire State Manufacturing Survey showed "conditions for New York manufacturers continued to improve slightly," the Federal Reserve Bank of New York reported Monday as the general business conditions index slipped to 3.05 in April from 9.24 in March.

The University of Michigan's preliminary April consumer sentiment index reading was 72.3, compared to the final March 78.6, the preliminary March 71.8, and the final February 77.6, according to market sources.

The Fed's failure to achieve either part of its dual mandate provides clear evidence of the need for "continuing highly accommodative policy by large-scale asset purchases," Federal Reserve Bank of Boston President Eric Rosengren said Friday.

The producer price index slumped 0.6% in March on a seasonally adjusted basis, while the core rate, which excludes food and energy rose 0.2%, the Labor Department reported Friday.

The Treasury Department Thursday auctioned $13 billion of 29-year 10-month bonds with a 3 1/8% coupon at a 2.998% high yield, a price of 102.487803.

The Treasury Department said it will auction $18 billion five-year inflation-indexed bonds on Thursday, April 18.

The Treasury Department said Thursday it will auction $35 billion 91-day bills and $30 billion 182-day discount bills Monday.

The unwinding of accommodation will determine the long-term inflation impact of QE3, Federal Reserve Bank of Dallas President Richard Fisher said Wednesday.

The Treasury Department auctioned $21 billion of 9-year 10-month notes with a 2% coupon at a 1.795% high yield, a price of 101.839163.

While it is generally acknowledged among FOMC members that QE3 is having a "meaningful effect" on the markets and supporting growth, there seemed to be a divergence of opinion on how long the Fed's asset buys would be needed, according to minutes of the panel's latest meeting.

The Treasury Department Tuesday auctioned $32 billion of three-year notes with a 1/4% coupon at a 0.342% yield, a price of 99.725644.

The Treasury Department Tuesday auctioned $45 billion of four-week bills at a 0.060% high yield, a price of 99.995333.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were lower, as the three-months incurred a 0.065% high rate, down from 0.075% the prior week, and the six-months incurred a 0.095% high rate, off from 0.105% the week before.

The Treasury Department said Monday it will sell $45 billion of four-week discount bills Tuesday.

The Conference Board's Employment Trends Index gained to 111.20 in March from an upwardly revised 111.43 in February, originally reported as 111.14, and is up 3.7% from a year ago, the group announced Monday.

Austerity budgets can stymie the moderate recovery the U.S. is experiencing and while accommodative monetary policy has fueled the recovery, fiscal restraint can tamp it, Federal Reserve Bank of Cleveland president Sandra Pianalto said Monday.