Once again soft data appears to be generating more reaction in the bond market than strong data -- consistent with the bullish undertone,

Once again soft data appears to be generating more reaction in the bond market than strong data -- consistent with the bullish undertone.

The Fed Chairman would be very happy if the bond market did some of the tightening for him. And I think if we saw the long bond yield back above, say, 6.75 percent, edging towards 7 percent, that would limit some of the restraint the Fed would have to impose on the economy.

The Fed Chairman would be very happy if the bond market did some of the tightening for him,

The data are consistent with very gradual cooling in the housing market.

I think you're seeing an enthusiastic response by the bond market because there appears to be a slight deceleration in economic activity. In order to continue to improve we'll need to see further signs of that slowdown.