Treasuries breaking down, 10-yr. at 4%
Meanwhile, if you're looking for evidence of inflation "pass through" from higher commodities prices, look no further than this Bloomberg story on Dow Chemical:
"Dow Chemical Co., the largest U.S. chemical maker, will raise prices on all of its products as much as 20 percent because of surging costs for energy, raw materials and transportation.
"The increases are needed after a 42 percent jump in first- quarter spending on raw materials and energy, Chief Executive Officer Andrew Liveris said today in a statement. The increases take effect on June 1, Midland, Michigan-based Dow said.
"Dow is trying to pass on higher costs to customers amid company forecasts that spending on energy and hydrocarbon-based ingredients will climb to $32 billion this year, four times the $8 billion the company spent in 2002. The rising costs are leading to ``difficult discussions'' with customers about increased prices for Dow products, Liveris said."