Ok, well the biggest econ print of the week is in and it’s a miss.
You can read the full breakdown here, but suffice to say the CPI disappointment is another blow to the Fed’s “transitory” narrative and if this trend doesn’t turn around soon, they’ll need to come right out and admit that they are going to simply ignore inflation in the interest of hiking to curb excessively loose financial conditions.
The market reaction was of course swift and predictably, the dollar is diving…
… and Treasurys are rallying…
…with 10Y yields now back to where they were after Yellen’s prepared remarks were first released on Wednesday morning…
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