Why doesn’t the market care about these inflation reports? First, by writing “market” I mean actual markets in bonds. Despite now three huge CPI’s in a row in the US, and an equal number of PPI’s even more obscene than those have been, bond yields are falling. In some places in the bond market, on the verge of tanking.
This is the opposite of what’s supposed to happen; presuming you believe, like you’ve told, these CPI reports are going to continue well beyond the trio. On the contrary, the verdict as viewed from (global) interest rates is on the verge of near certainty; they are not going to continue for much longer. In fact, a perchance worse fate than “inflation” simply fizzling out.
But why?
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