Now we have added the risk of war to every other issue bond investors fear.

As if we did not have enough uncertainty for investors to worry about, we have added the possibility of a war in the Ukraine. About the only thing left is an invasion of locusts. The bond market was driven by the huge inflation report last week. The CPI was reported as increased by 7.5% for the last twelve months. This was the fastest growth in the past 40 years. The report caused more investors to expect the Fed to move managed rates up more and faster than expected as recently as two months ago. The yield on the two-year treasury moved up to 1.60% before the prospects of war on Friday was elevated. The yield on the ten-year moved to 2.02% on Thursday before ending the week at 1.95%.