Market-Based Calculation Of Inflation

Compute the Market Measure of Inflation (MMI) by subtracting the current yield of an inflation-protected Treasury bond or note, of a given maturity date, from the current yield of the corresponding standard Treasury bond or note of the same maturity date.

MMI = current yield of 10-year Treasury note - current yield of 10-year inflation-indexed Treasury note

Date	10 Year	10 Year	Market
(MM/DD/YYYY)	Curr Yield	Inflation Adj	Measure
		Curr Yield	of Inflation
____________	____________	______________	____________
06/04/2007	4.93	2.54	2.39
06/06/2007	4.97	2.58	2.39
06/07/2007	5.08	2.66	2.42
06/08/2007	5.16	2.73	2.43
06/11/2007	5.15	2.69	2.46
06/13/2007	5.20	2.76	2.44
06/14/2007	5.21	2.76	2.45
06/15/2007	5.16	2.74	2.42
06/18/2007	5.18	2.76	2.42
06/19/2007	5.12	2.71	2.41
06/20/2007	5.13	2.73	2.40
06/21/2007	5.15	2.73	2.42
06/22/2007	5.14	2.70	2.44
06/25/2007	5.10	2.68	2.42
06/26/2007	5.10	2.70	2.40
06/27/2007	5.06	2.67	2.39
06/28/2007	5.09	2.69	2.40
06/29/2007	5.08	2.69	2.39

Note: The CPI rate of change for May-July 2007, determined from data provided by the U.S. Bureau of

Labor Statistics, was 2.58 per cent. The MMI calculated for that period was in the range 2.39 to 2.46.

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