Bonds Crushed By Modestly Higher CPI

When it comes to big ticket economic events, the average anticipatory headline tends to be a bit more dramatic than the actual outcome.  It's our way of preparing the audience for what's possible even though reality only occasionally explores the depths of those possibilities.  Then there are days like today where a meager 0.1% beat in core CPI has resulted in a level of selling pressure we might have expected to follow a much more alarming data result. 

10yr yields are already up to 4.50% and the first Fed rate cut is now being priced in for September by Fed Funds Futures.