Et Tu, PPI?

The Producer Price Index (PPI) has a sub-par record as a market mover for bonds when compared to CPI and other inflation metrics.  But markets have been more willing to react to many reports with traditionally poor track records.  PPI is no exception, but today's example has arguably had an unjustifiably big impact.  Core PPI remained at 2.4% y/y.  The monthly reading was 0.1% higher than forecast, but last month was revised 0.2% lower.  Should be sort of a wash, but bonds took it as a selling cue.