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10Y S&P 500

Futures Plunge, Yields Spike As CPI Fears Realized

Well there you go folks. 

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.

Beat

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

10Y

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

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

Dow

And here’s ES:

ES

And Nasdaq futs:

NQ

Across the pond, the reaction was swift and predictable:

Europe

“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).

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3 comments on “Futures Plunge, Yields Spike As CPI Fears Realized

    • broblawsky

      Yeah, those bad retail numbers are worse, in the long term, than the CPI results.

  1. ….is a red sky in the morning, sailors take warning!

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