The bond market might take notice
Wen you're buying 10-year notes from the Treasury yielding 0.70%, you're making a big bet against inflation. It will take a dramatic turn in prices to make that bet payoff, with CPI in February expected at 2.2% and 2.3% ex-food and energy.
For sure prices are going to fall with oil cratering and things like airfares and hotel rooms also coming under severe pressure. But 10 years is a long time and bond buyers are fighting the Fed.
In any case, the bond market isn't going to have a re-think after today's CPI report, so it's not going to be a market mover.
Later we get weekly US oil inventories and I'm expecting a big build in the next few months as drivers stop driving and Saudi Arabia floods the market.
