Treasuries look like they’re moving sideways again, which is a shift from the steady gains that government bonds have enjoyed since March. The uptrend for TIPS relative to the broader Treasury market is still intact, although long-term breakeven rates have remained steady for the past six months. The Fed may provide an assist, but a slowing recovery could be a problem.

Not surprisingly, high yield bond prices got pulled up nicely in the risk rally. It’s the same story here as it is for U.S. high yield. The dollar pulled back as the Fed took a bit more of a dovish tone to policy updates last week than some were expecting.

REITs are still driving higher here, although performance relative to the S&P 500 is moving sideways. Healthcare stocks are moving noticeably higher here for a few reasons. The word “taper” should be encouraging for banks since higher interest rates should be generally good for financials.