Wells Fargo senior strategist......>

US TSYS/RESEARCH: Wells Fargo senior strategist Boris Rjavinski and associate

strategist Zachary Griffiths cited this past week's strong August 0.4% Consumer

Price Inflation reading, saying CPI was "finally showing some signs of life for

U.S. inflation, both at the headline and on an ex-food and energy basis.

Seasonally adjusted headline CPI jumped to 0.4% from 0.1% m/m, while core

inflation came in at a strong 0.2% m/m."

- They added "the non-seasonally adjusted TIPS index came in at 245.52, besting

the 244.35 consensus. These month/month increases were enough to bring headline

CPI up to 1.9% and hold core CPI steady at 1.7%, where it has remained for the

past four months."

- They also said that "whether the sizable pop in energy prices is temporary or

sustained, it does help brighten up the carry picture in TIPS for now. Real

carry turned positive across the board while breakeven carry appears to rebound

in the near term after the initial dip due to a weaker July CPI print."