Rate sheets were steady yesterday following an improvement in bonds. It was a good start to the day.
CPI data released reflects the first inflation reaction to higher oil and gas prices resulting from the Iran conflict.
Bonds didn’t panic, though, since a jump in inflation due to the energy shock was already a given.
The question is, “How long do we expect to see inflation rise after the conflict is over?”
Much like interest rates (as we’ve seen the last few weeks), prices rise quickly but are slow to fall.