Futures Plunge, Yields Spike As CPI Fears Realized

Well there you go folks.

CPI blew through estimates and it looks like everyone’s worst fears were realized – at least temporarily – when it comes to the knock-on effect for bonds and equities.

10Y yields are rising fast (although maybe not as dramatically as you’d think):

And the knee-jerk in stocks was “big league”.

Dow futures plunged 500 points on the print before pairing losses:

And here’s ES:

And Nasdaq futs:

Across the pond, the reaction was swift and predictable:

“The futures were hoping for a weak number, that’s for sure, but I don’t look at the data and go like, ‘Oh my god.’ This is not a weak number, but it’s not a hot number,” Themis Trading’s Mark Kepner says, trying to calm people the fuck down. “We have just one report, and we will have to see a few more and I think it’s the general sentiment — the fear of higher rates and things getting too hot — set this number up to be more important than it was,” he adds.

More to come (of course, because you know, we’ve got to pile on).