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The Bond Rally Happened. Now What?
The November bond rally accelerated meaningfully on Tuesday in the wake of a cool US CPI report.
The data, which included a seventh consecutive decline in the 12-month rate of core price growth (to a 25-month low), was likely to embolden dovish Fed wagers as well as duration bulls.
The rates rally ignited by the CPI update found three-, five- and seven-year yields more than 20bps lower. 10-year yields were as low as 4.43% at one juncture.
Not to put too fine a point on it, but this is precise
I enjoy the horn you toot.
Virtuosity.
This “pedestrian” did just fine adding some duration over the past several weeks – bonds and utilities. Thanks for your analysis.