Greece remains heavy on the minds of the global financial markets with no agreement as of Friday morning. There are rumors of a potential bridge loan being discussed, which would kick the can down the road a few months allowing more time for Greece and the EU to come to terms on Greece’s huge debt burden.
In the U.S., inflation remains mild. The personal consumption price index, the Federal Reserve’s preferred measure of inflation, rose .3% from April, which is the biggest rise in almost 2 years. If inflationary pressure build, this will be troubling for bonds.
Global bond yields continue to edge higher for many reasons. Here in the U.S., bonds were in the red Friday morning with the 10 year U.S. Treasury yield hovering around 2.48%.
With technical support levels broken, we are biased toward locking in loans.