Bonds rebounded today after struggling in response to yesterday’s challenging CPI report. Meanwhile, the Producer Price Index (PPI) largely met expectations.

The PPI measures changes in the cost of goods and services at the production level in the U.S., reflecting what businesses pay to produce items. This contrasts with the Consumer Price Index (CPI), which tracks the prices consumers pay for those same goods and services.

The big report coming at the end of the month is the Personal Consumption Expenditure (PCE) which is the measure of how much money households spend on goods and services.

PPI reflects the cost of producing a basket of goods and services, whereas PCE measures what consumers actually purchase from that basket.

Clear as mud, right?

The bottom line: We regained yesterday’s losses, but the ride remains anything but smooth.

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