Today's CPI report set off a frenzy of trading in financial markets. The theme was consistent: Worry about more inflation. That hurt stocks, boosted the dollar and raised bond yields.
Yet a few hours later it's all unwound. That's a tough trade to square. Maybe more inflation now means less later? Maybe there's a sense that with the ECB shift today that central bankers are getting more hawkish.
In any case, US 30-year yields are back to where they were before the CPI report.
