It’s one of the primary reasons we’re having higher yields so far this year.

A rate increase at the March meeting is a done deal. We expect the yield on the 10-year to reach 4.75 percent.

Yields are moving higher in a response to an economy that is bouncing back. Inflation is still under control, but it’s in the upper end of the Fed’s comfort range.

I’m concerned that we will get higher inflation expectations, but that in actuality, inflation will remain low.

The markets right now are facing a critical juncture and they’re trying to determine if the strong economic growth we saw at the start of 2006 will continue.