US October CPI unexpectedly accelerated: headline CPI rose 0.4% MoM and core CPI
(ex food and energy) rose 0.3% MoM. The Bureau of Labor Statistics did not
publish a YoY inflation rate because data collection was disrupted during last
year’s government shutdown. Two-year Treasury yields jumped after the release;
the two-year is highly sensitive to shifts in Fed rate expectations. The print
has pushed markets to price a higher probability of additional rate hikes next
year.
