Bond Yield Update2Y bond yields still melting up
This leads me to believe that tomorrow is gonna be a pump and dump, nobody expecting a rate cut soon, and market still needs to price in a rate hike for July.
The algos still have to make their money, so I expect a gap up then a sell off as bond traders price in a rate hike. Remember the inflation target is 2%, the expected numbers are:
Expected CPI Tuesday 5:30am
USD CPI m/m 0.5%
USD CPI y/y 6.2%
USD Core CPI m/m 0.4%
I think the numbers come in as expected, the market pumps it because it's better Y/Y but then sell off because of M/M numbers like Europe did last week.