There's that phrase again: "global growth concerns"--that ridiculously broad concept that speaks to all of the more negative "what ifs" surrounding the global economy.  What if European QE doesn't stoke growth and inflation?  What if China is really in a downward spiral?  What if the Fed's policy stance driving too much appreciation in the dollar, leading to a pull back in foreign investment and corporate profits among multi-national companies?  What if a rising rate environment coupled with an appalling lack of wage growth kills any chance of domestic inflation?

Such concerns were foreshadowed in the bond market's unwillingness to move any higher in long term yields in June and the subsequently hard-fought battle to establish support there.  In other words, yields didn't just jump up and tap a ceiling of unknown strength.  Instead, they built scaffolding, took lunch breaks, wore hard hats, and hoisted huge slaps of concrete into place in late June and early July.  The second half of July marked start of climb back down the scaffolding.  As with any "concrete ceiling," this doesn't mean it can't be broken--simply that it's more meaningful and it makes a bigger mess if it happens.

Today's fuel for the still-burning fire of global growth concerns comes courtesy of this morning's economic data.  There was no meaningful advancement in the core PCE price index (one of the several inflation metrics watched by the Fed).  Inflation-adjusted spending was flat vs a downwardly revised +0.4 (from +0.6) reading last month.  ISM manufacturing was also weak, especially the employment and 'prices paid' components--both hot buttons.  This helped push bonds into positive territory and they haven't looked back.