Bond Yields Slide As Core CPI Weakest In Over 4 Years
Following yesterday’s stagnant PPI, today’s CPI is a shocker. Core CPI rose a mere 0.01% MoM – its weakest gain since Jan 2010. The ‘weakness’ was driven by energy (-2.6%), airline fares (-4.7%), clothing (-0.2%), and used car prices (-0.3%) tumbling. The headline CPI dropped 0.2% MoM (against a 0.0% expectation) – its biggest drop since March 2013. The 1.7% YoY gain (missing expectations) is the weakest rise since March 2014.
Core CPI slowest since 2010…
Headline CPI dropped MoM..