Three Day Interest Rate Rally Ends -Week in Review 12/13/13

This week we saw a 3 day "relief rally" in rates after lasts week's employment data. But Thursday marked the end of the rally when we lost nearly half of the improvement gained over the previous 3 days.
The budget deal coming from the House will be driving rates now. One of the reasons the Federal Reserve decided to delay a reduction in bond buying was "Fiscal Drag" (uncertainty and lack of legislation surrounding the budget, sequester cuts, and debt ceilings).
Retail sales saw it's sharpest increase since June, forcing rates up even higher because of the looming threat of a bond buying pull-back.