Treasury Yields Tumble As Producer Prices Deflate For 3rd Straight Month

For the third straight month, US Producer Prices deflated on a year-over-year basis in June.

Against expectations of a 0.2% decline, PPI Final Demand fell 0.8% YoY...

 

Source: Bloomberg

The headline PPI print fell 0.2% MoM against expectations of a v-shaped bounce back +0.4% MoM.

Food prices fell 5.2% in June as Energy rose 7.7%.

Core PPI also fell (down 0.1% YoY)

Which helps support the ongoing plunge in Treasury yields...

 

And completely decouple from stocks...

 

Trade accordingly.