Clients & Friends,
Rates closed the week up by about .250% across the board on all products.
Inflation, inflation, inflation. As I have said before, inflation is the arch enemy of bonds, and can cause rates to jump instantly on even a whisper of the word. Inflation erodes the fixed rate of return by bond holders enforcing bonds to raise their rates to attract investors. Stay tuned until next week, and keep your fingers crossed for a reversal and rally in rates back down.