According to the Labor Department, the Non-farm productivity of businesses in the first three months of the year has shockingly gained 2.2%. Expected gains were of 1.8% but obviously the actual overcame expectations.

Looking at this reading it would signal that the economy is doing well and that the housing sector had literally no negative effect on the growth rate. But if you look at the counterpart, we notice that the hours worked declined heavily and THAT ladies and gentlemen is a signal of a recession.

Unit labor costs rose 2.2 percent just below expectations and this is a key gauge of wage-push inflationary pressures. Over the year, labor costs inclined 0.2% percent being the slowest pace of rise since the second quarter of 2004 and looking at cost-push inflation point of view, there should be nothing to worry about. Yet on the other hand, hours worked fell to 1.8% in the first quarter marking the biggest drop in five years.

The upbeat data provided the dollar with strength as it gained against all the major currencies where the dollar index alone rose 0.6% to 73.47. Against the Euro, the greenback rose 0.7% to record a high of 1.5382 while against the Sterling; it recorded a low of 1.9520. And as the currency appreciated, treasuries reversed previous gains recorded earlier this session as yields remained lower.

In a different report, it seems the Fed Chairman Mr. Ben Bernanke remains concerned about financial market stability and will suggest to the Congress later today to set the date earlier on allowing them to pay interest on commercial bank reserves as a way to provide more liquidity in the markets.

The central bank isn