The 10 year treasury broke through the 4.80% level today! The push to higher rate levels is being fueled not so much of a pending FED hike but more of a lack of confidence in a potential FED cut later in the year. Stable employment continued doubts of inflation are the main reasons.

We have to believe the rise in rates will be temporary with the rise in oil costs. This rise in oil prices should quickly affect the spending habits of the average consumer as more and more of their disposable income goes into their gas tank and not retailers. The "trickle down" effect may take as much as two to three months before we see any tangible signs in consumer spending slowing.

We should see little relief in rates this week with little economic news and the market preparing for Memorial Day Weekend.