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Yields, Dollar Lurch Higher on Big CPI Beat

DATA REACT
  • With CPI accelerating well ahead of market expectations, US Treasury yields and the greenback surged in response, pressing most major pairs to new session lows and boosting the 10yr US yield to its highest level since May 3rd.
  • Equities slipped in the initial reaction, with the e-mini S&P falling to new weekly lows with the most outsized reaction in the NASDAQ future, which now sits lower by 1.3%.
  • Much of the initial move starting to fade, but USD stays firmer, equities stay weaker and yields stay higher relative to pre-data levels.

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