GOOD MORNING! The love/hate relationship between investors and AI and tech companies led to slit-up on Thursday. The dumping of big tech stocks in the NASDAQ dampened the feelings in the other equity indices, resulting in a risk-off trade. In turn, the funds flowed to Treasuries, causing the yield curve to shift lower. The inflows to the bond market made for a strong-dealer demand in the 30-year T-bond election. In fact, the take-down by primary dealers was the lowest on record and put them in the position to chase the market to cover shorts and to deliver bonds they had sold prior to the auction because “He who sells what isn’t his’n, must buy it back or go to prison.” A relief from supply trade also kept Treasury prices firm. The Treasury yield curve flattened as a result. The risk off sentiment and fear of bubbles popping also weighed on oil, gold, silver and the Bitcoin. The economic data releases has nothing to do with the outsized moves in the markets. But today’s data might. January’s Consumer Price Index (CPI) is to be reported an hour before stock exchanges opening bells. Both headline and core (excluding food & energy) are expected to have increased by 0.3% last month, which is inline with the monthly changes since June of 2025. There is inflation, but because of the base effect, the year-over-year rate is anticipated to drop to 2.6% on the headline and 2.5% on the core (Who lives without food & energy?). If you exclude everything, then there is no inflation. But what can go wrong, after all it is Friday the 13th. Have a Happy Valentine’s Day. The markets are treading water ahead of the report.