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European Central Bank President Mario Draghi said that deflation in the European Union is no longer a concern, and that the ECB will taper its way out of Quantitative Easing (remember that word?) in 2018.  Mr. Draghi called this period of time “reflation”, and the bond markets were quick to extrapolate inflationary  from the address.  Consequently, the bond market opened down about 25 bps this morning.  Our own Central Banker, Janet Yellen, speaks to the world in 90 minutes

The Case Shiller Home Price Index moderating from 5.9% last month to 5.7% this month would argue against the inference of inflation, though still a very healthy appreciation rate.