PPI was expected to tick 0.3% (0.1% core) higher in July. Instead, headline PPI soared 0.6% and core popped a stunning 0.5% – the highest since October 2018.
The impact on stocks has been muted so far, as the market is still giddy over the potential release of what is essentially a Phase 1 vaccine out of Russia. The impact on bonds, however, has been significant. 10Y yields have broken out of a long, slow decline.
When you’re piling on debt (with record-setting duration) the way the US is, higher interest rates are not good news.
continued for members…
Sorry, this content is for members only.Click here to get access.
Already a member? Login below… |