August 10, 2022 12:39 GMT
- Dollar drops sharply in response to the lower-than-expected inflation read, with the USD/JPY drop amounting to close to 250 pips, touching 132.69 for a new intraday low to near the 132.52 posted on Aug 5th.
- In equity space, the e-mini S&P surged, touching a new session high of 4199.75 and holding the majority of the gains a few minutes out from release.
- Treasury yields pulled sharply lower, prompting the US 10y yield to print 2.666%. Across the curve, yields bull steepened, with volumes surging across futures contracts.
- For rates pricing, odds of a 75bps move in September receded sharply, with the implied rate hike in September dropping around 10bps to circa 58bps at typing.