🚨 US producer inflation hit 6.3%. Yet Treasury yields eased later in the week. Why?
#usppirises6.3%yearoveryear
September PPI rose 1.3% month-on-month, the biggest increase since March 2022.
Energy was a major driver: final-demand energy prices jumped 10.8%. But services also rose 0.8%, while an index excluding food, energy and trade services increased 0.5% monthly and 5% annually.
This wasn't exclusively an oil story.
Here's the complication.
PPI measures prices received by producers, not the final prices paid by consumers. Higher costs can pass through to CPI, but the timing and size depend on margins, contracts and competition.
Meanwhile, Treasury yields retreated from their post-CPI highs as investors weighed the inflation shock against concerns about growth, AI financing and credit risk.
That's the real tension.
Hot inflation can keep monetary policy restrictive. But worsening growth expectations can push investors toward bonds at the same time.
For crypto, neither signal should be traded in isolation. The important question is which force dominates: persistent inflation or weakening risk appetite.
Will producer-price pressure feed into consumer inflation—or will businesses absorb more of the cost?
Not financial advice.
$BNB $BTC $SOL
#USPPIRises6.3%YearOverYear #Macro #BrentHits$110ForFirstTimeSinceMay #Nasdaq100Falls5.5%InWorstWeekIn18Months
#usppirises6.3%yearoveryear
September PPI rose 1.3% month-on-month, the biggest increase since March 2022.
Energy was a major driver: final-demand energy prices jumped 10.8%. But services also rose 0.8%, while an index excluding food, energy and trade services increased 0.5% monthly and 5% annually.
This wasn't exclusively an oil story.
Here's the complication.
PPI measures prices received by producers, not the final prices paid by consumers. Higher costs can pass through to CPI, but the timing and size depend on margins, contracts and competition.
Meanwhile, Treasury yields retreated from their post-CPI highs as investors weighed the inflation shock against concerns about growth, AI financing and credit risk.
That's the real tension.
Hot inflation can keep monetary policy restrictive. But worsening growth expectations can push investors toward bonds at the same time.
For crypto, neither signal should be traded in isolation. The important question is which force dominates: persistent inflation or weakening risk appetite.
Will producer-price pressure feed into consumer inflation—or will businesses absorb more of the cost?
Not financial advice.
$BNB $BTC $SOL
#USPPIRises6.3%YearOverYear #Macro #BrentHits$110ForFirstTimeSinceMay #Nasdaq100Falls5.5%InWorstWeekIn18Months