Bonds opens with a slight positive bias this morning, but not enough to make up for deterioration yesteday.  Stocks opened down in response to news that Germany's 2nd Qtr GDP grew by only .1% vs expectations of .5% growth.  Stocks started to gain back some of their losses on news that July Industrial Production in the US came in up .9% which was better than the .4% growth expected. However, there does not appear to be much momentum on that news. Today we received some inflation data.  Import Prices excluding oil and Export prices excluding agricultural products increased slightly higher than expected.  Given the current low yields on bonds, this week's Producer Price Index (PPI) tomorrow and Consumer Price Index (CPI) on Thursday will take on added importance.  If a 10 yr US Treasury is paying 2.28% and inflation is running higher than that, then the inflation adjusted return for investors in bonds is negative.