What CPI (And PPI)?

It’s almost like the bond market has been expecting all this, the reflation sell-off earlier in the year before February 24, but then surmised how the underlying economic condition (outside as well inside the US, global factors after all) aren’t likely to sustained such commodity, producer, or consumer price acceleration or advance for very long.

Transitory inflation is no inflation at all; unusually low nominal and real yields all around.

Maybe this all changes if the price estimates keep coming in hot month after month beyond this one (though oil is back to front-end contango and selling today), and bonds resume their previous upward turn having their collective minds changed by events. Balance of probabilities right now, however, have pretty firmly demonstrated relatively firm expectations even belief in “transitory” despite this week’s big CPI/PPI exacta.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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