Tame Inflation Data Sparks Treasury Bulls

Bonds – Bonds are trading 13 ticks higher this morning on Core PCE Inflation data showing 0 percent inflation. Forecasters were looking for a rise of 0.1 percent, following a 0.3 percent reading in February. In addition to the tame inflation data, economists at several large investment banks – including Goldman Sachs and Merrill Lynch – have disagreed with Fed Chairman Ben Bernanke’s assessment that interest rates will have to be raised to keep inflation in check. Read More....