Dollar, Yields Stage Hilarious Reversal Despite ‘Nail In The Rate Hike Coffin’

Ok, so it didn’t take long for the dollar and yields to reverse course and catch up (literally) to the post-CPI bump in equity futs.

The greenback and yields understandably nosedived following (another) lackluster inflation print, but apparently everything is now going to get pulled higher by the cash open in stocks.

Here’s the dollar:

DXY

And here’s USDJPY (which is particularly hilarious):

USDJPY

Same thing in Treasurys:

Yields

Gold has given it all back and then some:

Gold

At least one FI strategist ain’t buying it.

“The CPI number pretty much puts the nail in the coffin for 2017 hikes,” Janney Montgomery Scott’s Guy Lebas says, adding that although “you can pin some of it to one-off causes, that argument is getting thinner the more this persists.”

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11 thoughts on “Dollar, Yields Stage Hilarious Reversal Despite ‘Nail In The Rate Hike Coffin’

  1. Those inflation numbers are as phony as a Madame President cap.

    You miss the most important and telling market. Bitcoin surges to 3500 for the first time.

    Most of the planet has rebuked dollars. Nobody here in Asia accepts dollar as payment for anything.

    Everything is bitcoin. Chinese own 96% of bitcoin. That’s why it’s now the richest nation on earth. Richer than America and all of Europe, combined. Let them drown to death in their POS depreciating fiat.

    Interest rates in US and Europe should be raised north of 10% again, given the hyperinflation bubbles everywhere. I don’t care. All my wealth is in property and bitcoin.

    Bitcoin will exceed 5000 this year and 10,000 next year. Unless interest rates are raised way up in hurry.

  2. IRB, If the NK nutshell attacked and pulled the electric grid where you live YOUR bitcoin would be worth zero. And when some Silicon Valley geek comes up with Two-Bit coin and bitcoin takes a back seat with the likes of Confederate Currency, CompuServe, Prodigy and Zip Drives you’ll wonder why you just couldn’t sit still for 2 minutes and listen.

    1. not to mention that unfortunately, the government can just decide to regulate it one day. to be clear, i don’t think that’s necessarily “fair” or a “good” thing. but all kinds of ostensibly good ideas have been summarily squashed and relegated to the dustbin of history by government decree. that’s just how it goes sometimes.

      1. Dream a little dream. Bitcoin is anonymous, untraceable, totally decentralized beyond borders and beyond reach of any government.

        The SEC already announced its intent to regulate last month. Result? Bitcoin promptly reversed its downward correction at 1900 surged up to 3500 in just three weeks.

        Big victory lap for decentralization and individual freedom. Big loss for fascist government tyrants.

  3. Seriously though, CPI will rise for the coming months, partly due to the coming y-o-y comparisons in the dollar. Also, there is the lag time it takes for inflation to flow through into the end products.

    So don’t be playing Taps for that third rate hike just yet.

NEWSROOM crewneck & prints