- June numbers show continued strength, which will likely continue into the second half of 2021.
- Long-term rates were mostly muted but with a flatter curve, implying that investors are pulling forward the timing of Federal Reserve's asset-purchase tapering and rates lift-off.
- June's strength on a month-over-month basis was again largely driven by transitory factors and reopening strength, in a pattern consistent with the current phase of business cycle, the effective vaccination effort, and improving labor market.
For further details see:
Is U.S. Inflation Still Transitory?