JGLD - Tuesday's CPI Numbers Will Be Interesting

• Last Friday’s huge PPI number looked like it could cause a dramatic response in both bonds and stocks, as it came in at +4.2% (year over year), the largest gain since 2012.
• Bonds did not sell off violently, probably since some uptick was expected on the economic reopening, and all this has been well-telegraphed by the Fed.
• I think a 2% handle on the 10-year Treasury yield is just a matter of time, with 1.77% being the "line in the sand" and the high so far in 2021.
• This inflation pickup is happening without seeing oil spike higher, as it did in 2008. This time, there is a dichotomy in industrial commodities where energy is somewhat lagging, while the LME Metals index is within a stone's throw of an all-time high.

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