Not much to report on this week with respect to economic news. The one headline that caught some attention was the diverging opinions within the Federal Reserve concerning the timing of a rate increase. There appears to be no clear message out of the Fed as to what will be the trigger for an increase in interest rates. The bond market had a muted response to the Fed Minutes as bonds are mildly off their lows from earlier in the week and fell range bound (1.500% to 1.600% on the 10-year U.S. Treasury note).
When it is all said and done, bond yields are all about inflation and economic data. We see little inflation at the moment (although WTI oil traded up $4 this week to barely over $48.00 per barrel) and we are keenly aware of the global economic troubles that are abound.