The focus should be on the core inflationary readings, and they’re around the central bank’s 2% target. There is potential for it to grind higher. But for now, the current round of data just keeps the Fed on hold for the first half of the year.
We’ve had just so much concern, on the flip-side, about global growth slowing down -- this should give calm to the market. If we have continued solid data, and then this number, we’d see a sell-off in the market because it would mean the Fed is going to go two times this year.
The fact that you’re in the front-end of the yield curve means you either benefit from unrealized gains, or some higher reinvestment opportunities.
Investors are flocking to the short-end of the bond market as money managers declare it one of the safest places to shield themselves from the Fed’s rate increases and geopolitical jitters roiling markets
Treasury yields rise Wednesday after traders digest a key inflation report that offered a glimpse into how price pressures are developing in the economy.