Oil prices have backed over $22 here. And I kind of think that this is what is probably going to give a bumpy ride for the next several week to the bond market.
It's the tail end of the month, so the market is probably going to stay in a tight trading range, looking over the shoulder of the bond pit.
As long as there is no inflation this is extremely good for the financial markets and also for the bond market. What we saw a couple of weeks ago was a backup due to technical factors rather than any fundamental changes.
We are already seeing some signs of a slowdown in the economy. If durable goods confirm what housing starts voiced last week, then obviously we might see a little bit better tone in the bond market.
You would think on a day when the bond market is very weak and the dollar is collapsing that technology would be weak. But, the weaker dollar is being interpreted as positive for the sale of technology abroad.