September PPI: hot data, opposite market reaction
What happened instead: Yields fell and gold rose. One reading is that the market is pricing weaker growth, not a more hawkish Fed. If so, the bond market is treating inflation as a demand problem, not a policy problem.
What to watch:
• Whether the 30-year holds below 5.4% or the move reverses
• Fed commentary on whether they look through energy-driven inflation
• How BTC trades against gold and yields over the next sessions: risk assets tend to struggle when growth fears are the driver
Caveat: One print and one day's reaction aren't a trend. Yields can reverse quickly.
Do your own research.
#PPI #Inflation #Macro #GOLD #Bitcoin
What happened instead: Yields fell and gold rose. One reading is that the market is pricing weaker growth, not a more hawkish Fed. If so, the bond market is treating inflation as a demand problem, not a policy problem.
What to watch:
• Whether the 30-year holds below 5.4% or the move reverses
• Fed commentary on whether they look through energy-driven inflation
• How BTC trades against gold and yields over the next sessions: risk assets tend to struggle when growth fears are the driver
Caveat: One print and one day's reaction aren't a trend. Yields can reverse quickly.
Do your own research.
#PPI #Inflation #Macro #GOLD #Bitcoin