bond market u-turn?

What's more important than any economic data release? The market's reaction to that data! And boy are things getting interesting in the Treasury complex.

Bonds shot up in price right after the CPI figures came out, and yields dropped fast. Indeed, the long bond was up about a full point earlier. But as the day wears on, those price gains/yield drops are moderating quickly. Today's close could be very important -- if we can't hold these gains, maybe the market is saying the best inflation news is behind us for now.