Good Morning on this best day of the week, Wednesday,

CPI came in too hot once again, and we are back expecting higher rates. The 3.40-3.50% ten-year target is sadly still in place. From a more macro perspective, the mid-3 % level is critical and may hold. This is a bond yield that exceeds dividend yields in the stock market, and its a rate that many investors will view as good enough. Now for the downside to that statement. If inflation remains in the 7-8%, clearly, a 3.5% bond yield is not enough for anyone with a sane mind. If inflation is double the bond yield, the bond yield is negative 3.50%. Nothing good will happen until inflation falls. Stay locked!

Some other quick hits…

• U.S. household debt rose to a record $15.84 trillion in the first quarter driven almost entirely by a $250 billion increase in home loan balances and…
• College students and their families should keep an eye on the Treasury Department’s government-bond auction this week. It could influence their finances for years to come. The auction, scheduled for Wednesday, will be the main determinant of the interest rate on new federal student loans. Because bond yields have soared this year, that rate is likely to be much higher than the last time these student-loan rates were set a year ago.

Please remain safe and healthy, make today great.