Decent Day, But There's a Catch

Bonds improved today!  The rally was moderate by typical standards, but it feels like a huge victory in light of the 2yr highs in rates seen yesterday.  It's not very different from last week's resilience.  At the time, we were concerned that it could be a trap (or at least cognizant of the possibility).  This time around, the same reminders are in order.  It's pretty much that simple until and unless we see a much bigger push toward lower yields/rates.  Even then, we need to see how bonds are doing after next week's Fed announcement before considering any tweaks to the early 2022 rising rate narrative.