Markets & Economy

The bond market could not be more clear: Yields are going higher

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There are times to suspend analysis and just listen to markets. Have to be careful even with that. First, pick the right markets. The stock market is not worth the trouble, thousands of different stocks at once sounding like a symphony performed by fifth-graders. Pick bullet markets: The 10-year U.S. T-note has one issuer and is the most creditworthy and widely traded IOU on the planet. And oil. The second caution: Doonesbury's Zonker Harris speaks to his flowers and they reply. He's stoned, but even if you're not, be careful to listen to markets and not your own echo. Last week had three big events: release of May CPI, the Fed meeting and the further fragmentation of Iraq. Tuesday's CPI jumped in an unpleasant surprise: 0.4 percent overall and 0.3 percent "core." The 10-year T-note yield rose instantaneously -- not far, just from 2.59 percent to 2.65 percent, but that 2.65 percent is one foot over the threshold toward a significant run upward. From January to May the 10...