IBTK - Now 3 Huge PPIs Which Still Don't Matter One Bit In The Bond Market

• Without a “bad” Treasury auction, there was no stopping the bond market on Wednesday from retracing all of the previous day’s selloff and then some. This despite the huge CPI estimates released before the prior session’s trading, and now PPI figures that are equally, if not more, obscene.
• The BLS reports that its main PPI, the one for finished goods, was up 9.19% yoy in June 2021. That was a bit more than the 8.38% gain in May but still below the peak of 9.42% set in April. The hot inflation continues, but it’s no longer accelerating in its widest set.
• But the core rate continues to do just that. Excluding food and energy costs, the stripped-down version was 5.58% higher in June 2021 than June 2020.
• Despite the huge headlines, there are a few pieces which indicate that these price deviations are large but they might already be on their way out. The main PPI, the one for finished goods, is a prime example.

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