Posted To: MBS CommentaryHave you heard the one about the Turkish debt crisis? Things are pretty bad for Turkey and the currency is indeed in freefall, but until the charts do something different, they’re not yet making a compelling case for a “risk-off” connection to the US bond market. Rather, today’s action was centered on this morning’s Producer Price Index (PPI). PPI isn’t typically a big market mover, but the stakes are a bit higher at the moment. Reason being: tomorrow brings the more important CPI data (consumer price index). The most widely-followed part of the CPI data–“core” year-over-year–has poked and prodded a ceiling of 2.3% during the recovery from the Great Recession, but it has yet to break through. With last month’s reading right on the 2.3% line, a downturn…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.