Re-Rising Interest Rates

At 10:00 am, the Institute of Supply Management (ISM) released a report that includes a prices-paid component which is correlated with inflation (more so to inflationary expectations). While initially reported incorrectly, it was subsequently corrected to a value of 73 (see story),which promptly ended the bond market rally. The 10-year rate promptly returned to above 4.51 percent as of 11:15 am. Oil prices also rose, intensifying short-term inflation fears.