Good Tuesday AM from your Hometown Lender,

No love in the bond market today.

We had the first inflation reading of the week. The PPI which measures inflation at the producer level, it came in exceptionally low. Much lower than expectations which should have helped bonds but has not. Additionally, there is a lot of chatter that the new administration will choose to implement tariffs slowly and not all at once to limit the impact on inflation.

Those two components should have given bonds a substantial kick toward improvement but did not.

I am assuming markets are waiting on tomorrow’s CPI report for confirmation on slowing inflation before considering any improvement. It is not recommended to float into a big news event like CPI so be careful.

Stay safe and make today great!!!