1. But Friday, long-term interest rates fell as investors focused primarily on the good inflation news. 2. Benign inflation news has often emboldened central bankers in the past to push rates lower when the economy shows signs of slowing. 3. Benign inflation news like that has often emboldened central bankers to push rates lower in the past when the economy shows signs of slowing. 4. Bond prices, meanwhile, benefited from the benign inflation news. 5. Bond yields that low would require continued positive inflation news in the U.S., of course. 6. A second dose of benign U.S. inflation news next week will leave investors with three good reasons why Federal Reserve policymakers should leave interest rates alone this month. 7. A second dose of benign U.S. inflation news this week will leave investors with three good reasons why Federal Reserve policymakers should leave interest rates alone this month. 8. Despite the good inflation news, many analysts are still marveling at the decline in interest rates. 9. Even so, some investors remain unconvinced that a tight labor market will be enough overshadow the positive inflation news of the past week. 10. European markets, girding themselves for the American inflation news, dropped even more than the eight-tenths of one percent decline in the Dow. |