Straightforward, Uneventful Session Caps The Correction

Straightforward, Uneventful Session Caps The Correction

Bonds have been in correction mode for almost the entire week.  Early trading on Monday morning was the only exception with the unwinding of the Yen carry trade dominating the action.  But even then, bonds had given up all of the gains by the close of business on Monday and only continued losing ground through the end of the Treasury auction cycle yesterday.  If there's one day this week that had the best chance of seeing an end to the correction, today would be it.  And it was!  Dare we say this has all been fairly logical, even if Monday's initial volatility presented a big curve ball?  If things remain logical, the next big move, for better or worse, stands the best chance to find inspiration from Wednesday morning's CPI data.