From Ritholz's blog a week ago, Fade the Inflation Hysteria Unit Labor Costs and CPI sport a high +0.88 correlation: Average Hourly Earnings and CPI have a +0.79 correlation: An interesting revelation is that low unemployment doesn't lead to overall inflation in the economy but rather asset bubbles, ie tech stocks in the 90's and the housing/credit boom in the '00's. Stop looking for higher yields, ain't happening.
US media is seriously lacking. The commodities section at the WSJ only talks about oil and gold day in day out.
One week later, the market is higher, bond yields lower (3.36 vs 3.5 when they announced). Conclusion: Contact your neurosurgeons to remove that walnut sized gland from your head.
Is it opposite day or week or something? New negative outlook => higher markets and lower yields? That's not what I learned in school!