The Consumer Price Index (CPI) came in higher than expected primarily due to an increase in energy in food costs.  The CPI was up 1.1% for the month vs a projected .7% increase .  The core index which strips out food and energy was also higher than expected though with a .3% increase vs a projected .2%.  On a year over year comparison, the headline CPI is running at a 5% annual increase with the core rate at a 2.4% annual increase.  These numbers in conjunction with the testimony yesterday by Fed Chairman Bernanke on his concerns about inflation are causing deterioration in the bond market.  We are currently recommending locking if you are closing within the next 30 days.