Fed officials keep saying they want to raise interest rates this summer, but somehow the bond market doesn't quite believe it.
Markets were fairly quiet Monday with the stock market closing lower on light volume. The S&P 500 slipped four points to 2,048, and the Dow was down eight at 17,492. Treasury yields, at the short end, were slightly higher with the two-year around 0.89 percent in late trading. The 10-year yield was about 1.83 percent.
"I don't think the market is prepared for June yet," said Brian Rehling, co-head of fixed income strategy at Wells Fargo Investment Institute. "The more dovish [FOMC] members, obviously Janet Yellen, is part of that. … They appear to hold the majority of the committee, and I think they're going to wait for more economic data to really prove out that they should raise. There are some risks if they raise too early."