NEW YORK ( TheStreet) -- Markets have moved slightly higher, but overall haven't reacted to much of Thursday's economic news. Albert Fried's Ben Willis is with TheStreet's Debra Borchardt, discussing the latest market action.

Willis said high-frequency traders initially reacted to some of today's news, but largely quieted down near midday.

He added that investors should watch the yield on 10-year Treasuries, especially ahead of the nonfarm payrolls report for August, set to be released tomorrow morning.

As yields continue to rise, money keeps pouring out of bond funds and into money market accounts. Willis went on to say that the money is working its way slowly into the equity markets, but general investors take a long time to transition.

Bond investors are used to seeing their statements show slow, but steady, incremental moves higher. But with yields shooting up, those balances have actually begun to drop, showing losses for some investors.

He added that this will likely come as a shock to many, since most of them originally flocked to bonds as a safe haven.

While the numbers haven't been great, rates are still at generational lows. Willis concluded that the economy will function "just fine" with a 5% mortgage rate, but it will take time for the public to adjust.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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