Yesterday morning two reports showed more weakness in the economy than analysts had been expecting.  The May Philadelphia Federal Reserve Region Index dropped from an expected 20.0 to 3.9.  It was 18.5 in April.  Separately, the Conference Board's April Leading Indicators Index dropped from .7% in March to negative .3%.    These two reports helped to stem was was appearing to be a short-term movement to higher rates.  Interestly, bonds did not rally on the reports.   Short term investors in bonds are treading water now trying to figure out whether to hold or sell.  Volatility is expected to increase now as a consensus gets established on whether or not the US economic activity will slow further or pick back up.