Time will tell if the improved rate outlook provided by the release of the CPI will tighten up the ABS market in the weeks and quarter ahead. Most investors took it as the first sign that another Treasury rally similar to last fall would be curbed and that sloppiness in the market lately would eventually settle out.

Still, last week saw more of the same as the ABS market remained soft. A big Chrysler offering and three home equity deals representing the spectrum of credit and debt quality in that sector all priced wide, continuing a trend begun weeks previous when trepidation of Fed action in response to inflation fears began to rear.

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