2 big days with 2 different outcomes. On Tuesday, Fed Chair Janet Yellen in her annual speech before Congress, called the Humphrey Hawkins testimony on monetary policy, suggested that “waiting too much longer to raise rates would be unwise” (i.e. prime rate).
This sent the markets reeling, as investors see this as negative for their investments. Interest rates went up on that news.
The very next day on Wednesday bullish economic numbers came out: the January retail numbers were up 0.4%; excluding auto sales they were actually up 0.8%. The January CPI (Consumer Price Index) was up 0.6%. Both are indications that inflation could be kicking in. That caused rates to go up a little more.
Thursday and Friday were quiet as far as economic news, and the bond market recovered a little.