CPI coming up
Here's a final thought on CPI ahead of the data at the bottom of the hour.
In the prior report, headline CPI was 4.2% compared to 3.6% expected. The 10-year yields rose 6 bps on it and that gain lasted all of three days, the dollar gain was even more short-lived.
The bond market appears to have concluded that it will all be transitory. Of course, if the data continues to beat on the upside, it will have to reconsider but until proven otherwise the trade will be to fade inflation fears.
Today is a big test though, the headline is expected at 4.7% and 3.5% on core.
From Nordea:
