Well...Bernanke did well yesterday. This in conjunction with GDP cratering and Jobless claims spiking have laid the ground work for a huge gap up in bonds. We are about to test the highs of early march.

The bond market loves when the Fed promises to fight inflation...EVEN if it means tightening policy. Long term bond buyers care less about higher rates in the future than they do about inflation. Inflation erodes their return.

In the end it will always be about Jobs and Inflation. Jobs cannot grow without a strong GDP and in a normal none steroid induced economy, this is the backdrop for longer term lower rates. Just be careful if we bounce off 102.80!

Have a great day!