Al Grant's Blog

For the fourth week in a row rates ended worse than they began.  After last week's overload of economic data this week's calendar will seem almost nonexistent. So will rates finally begin to level or will they continue their trek higher yet again?  Read on to find out.

Stocks are continuing to fly high and as investors continue to plow money into the stock market, bonds and rates will likely continue to suffer. To add fuel to the fire, the fed's FOMC minutes released last week, revealed just how worried the Fed is with inflation.  The report revealed that the Fed feels inflation is still "uncomfortably high."

To make matters even worse, the Jobs report showed stronger than expected job creations.  May added 157,000 jobs to the already tight job market, another negative for bonds and rates.

With little on the radar to pull bonds out of their tailspin, it is likely that rates will continue to move higher.

The bottom line: Expect rates to continue their upward trend throughout the week.