The Sun Also Sets on Bond Rallies
Don’t worry, the headline is much more dire than the underlying message. Long story short, there are always some counter-trend influences even when the bond market is trending decisively in one direction. One might refer to the trend since May or to last week’s CPI reaction as decisive. As such, one might increasingly expect some ground to be given. We could certainly argue that we’ve seen resistance in bonds ever since the middle of Thursday morning, following the CPI rally. In a figurative sense, this re-sets the board for the next move, and big ticket economic data helps determine the direction of that move.