Unfortunately, Bonds Did Exactly What They Were Supposed to Do After CPI

Unfortunately, Bonds Did Exactly What They Were Supposed to Do Today

Over the course of the past two weeks, and especially in the past few days, there's been so much focus on today's CPI release that it may have bordered on annoying.  A few things are more annoying, however.  Today's example is a bond market that was incredibly eager to confirm that CPI deserved every bit of the recent hyper-focus.  By the time we consider that the big jobs numbers earlier in the month hit when yields were low enough to offer little argument to correction, today's CPI reaction is larger and more significant by an order of magnitude.  The heretofore ceiling at 4.19% in 10yr yields was immediately shattered and we now find ourselves at the weakest levels in 2 months, resigned to wait on other economic data to tell a more rate-friendly story.