You Won't Believe What Just Happened in the Bond Market

Everyone is talking about rate hikes and hot inflation.

Yesterday’s CPI was supposedly another reason to sell Treasuries. Today’s PPI was supposed to confirm it. Yields initially surged, commentators dusted off the usual higher-for-longer clichés, and the Federal Reserve’s imagined war against inflation was once again declared the only story that mattered.

Then the bond market rejected the entire narrative.