February core Producer Price Index fell 0.3% and February industrial production fell 0.6% and these larger-than-expected drops helped treasuries rally. The market liked the idea of inflation fears at bay. Then the preliminary University of Michigan sentiment index came in stronger-than-expected at 91.8, up from 90.6 in February. Prices chopped around a bit but the street was overly long and the ultimately bond-unfriendly numbers forced selling. The only significant flows were some yield curve liquidations, characterized as profit taking by a trader. A brief end-of-day uptick was precipitated by spec buying on renewed equity weakness. Also worrying traders was the triple witching day in stocks.