• Core MM CPI 
  • 0.1 vs 0.3 f'cast, 0.2 prev
  • unrounded 0.057
• Core YY CPI
  • 2.7 vs 3.0 f'cast, 3.1 prev
• MM Headline CPI
  • -0.1 vs 0.1 f'cast, 0.2 prev

A typical beat/miss in monthly CPI consists of a 0.1 deviation from expectations.  0.2 is less common and is a bittersweet victory for bonds in light of inflation that may be yet to come due to tariffs.  That's the concept that explains why bonds aren't experiencing a tremendous rally on this news.

Yields were already lower overnight and have added only modestly to those gains following the data.  MBS are up 5 ticks (.16) and 10yr yields are down 5.3bps at 4.300.