• Core MM CPI
    • 0.228 vs 0.3 f'cast, 0.1 prev
  • Core YY CPI
    • 2.9 vs 3.0 f'cast, 2.8 prev
  • Headline MM CPI
    • 0.3 vs 0.3 f'cast, 0.1 prev

Although the unrounded number for monthly core CPI was just a little bit warmer than the rounded number, a beat is a beat, and bonds are reacting accordingly. 

10yr yields are down 2.9bps at 4.406 and MBS are up an eighth.  The details will now be digested.  Specifically, core goods are up 0.7% year over year, which is a fairly clear indication of tariff impacts.  But the market can look past that if other inflation is falling enough to offset.