The Market Did Not Obey

This week, wholesale prices jumped 1.3% in September, double the forecast, and bond yields fell anyway. Aki: fell? Bolt: 9.7 basis points, to 5.093%, a second day of buying. Lord Ozen: hot prices, yields must rise, obey me! Aki: hot print; bonds rose anyway.

The ten-year Treasury yield kept falling on Thursday even after wholesale prices came in at 1.3% for September, more than double the 0.6% forecast: by mid-afternoon it was down 9.7 basis points at 5.093%, extending Wednesday's rally, so a hot inflation print of the kind that usually pushes yields up did not stop the move into bonds.

Starring

🎙️The TellerAkiBoltLord Ozen