A real bottom or a head fake?
Apart from a correction on Wednesday, market movements were generally positive this week as investors reacted to friendly earnings announcements. Market players were probably tired by Friday, but by then there was no question that indexes would post gains for the week. Investors are still not sure whether the latest gains mean that stock prices have hit their low for this cycle. It will take more than two weekly gains to prove that the shark-infested waters are safe.

Yields on the rise
The economic news was not all that relevant to bond markets this week, but the surge in equity prices certainly was. As equity markets rallied during the week, bond prices tanked and yields rose. To some extent, money may have flowed out of safe-haven bonds and back into the equity market. Also, bond market players may feel less confident that Fed officials will stand ready to cut the federal funds rate target any more in this cycle now that stock prices may be on the mend.