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Interest rates are on the rise with the jump in CPI core inflation this morning. The stock market got a bounce today; listening to CNBC however, we would think this is the beginning of the next bull market---no so, after falling for 8 out of the last 9 sessions we do not see anything here that changes the bearish outlook for stocks. Fed officials need to take a break from their inflation warnings--the market have gotten the message, nevertheless the parade of Fed speakers continues and is getting boring and obviously redundant. The DJIA ended +111, NASDAQ +13, S&P +6. 10 yr note -24/32 5.06% +10 BP. Mortgage prices -12/32.The Fed Beige Book this afternoon added top the Fed's now over-the-top drumming that inflation is on the cusp of increasing. The Book called attention to wage pressures in certain skilled sectors is increasing. While that isn't new news, and it is contained as always to certain small niche skilled areas, it verifies what Bernanke and the other Fed officials have been saying; Bernanke fumbled the ball early in his new job with contrary statements, and with three more newbies on the FOMC it is like kids on the playground unable to just say it a few times. We all get it Mr. Benranke.With the core CPI at 0.3% for the third month in a row today, the Fed will increase the Fed funds rate on the 29th. It is being baked in the cake as we write today. The entire yield, trading under 5.00% (except the 30 yr) for the past week, today the curve is all above 5.00% with the 2 yr note at 5.09%.

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