Today's economic news threw a curve ball to both the stock and bond markets.  June's Retail Sales were up .6% which was slightly higher than expected but ex-Auto were only up .3% which was lower than the .5% expected ex-Auto increase.  This news, by itself, should have nudged interest rates lower.  However, the June Producer Price Index (PPI) was up 1.8% with the core rate up .5% which was a "hotter" inflation reading than was expected (PPI was expected to increase .9% with the core rate up .1%).  As such both bonds and stocks are down in price (bond yields/rates move in an opposite direction to bond prices).