Mid week we had a bit of a rally in the bond market which started to erase the higher yields/mortgage rate movement. But like any good news, we have a Debbie Downer at the party.

Yesterday, New York Fed President John Williams dampened the spirits. He stated that he wouldn’t rule out further rate hikes until the data showed lower inflation figures.

This announcement prompted a sell-off in bonds. Think of it as Quantitative Tightening rather than Quantitative Easing (buying bonds/securities to lower rates).

Next week, we’ll see New Home Sales, Mortgage Applications, Durable Goods Orders, Jobless Claims, and Friday’s Personal Consumption Expenditures (PCE).

The bottom line is that there’s a growing tendency toward lower yields, so the prudent approach is to exercise patience.

Regarding the headline; if you’re simply coasting along without putting in effort or actively working towards something, you’re likely to experience a decline or negative consequences.