Rates Fall Despite Much Higher Inflation; Mortgage Availability Highest Since Pandemic Began

Rates Fall Despite Much Higher Inflation; Mortgage Availability Highest Since Pandemic Began

Best Levels in Months After Much Higher CPI Data (No, Really!) If you'd told someone that core annual CPI would come in 0.4% higher than expected at a staggering 3.8%, but that Treasuries would rally to the best levels in over 3 months, people just might think you're crazy. Crazy was the reality today. After a token sell-off in the 20 minutes following the CPI data, bond traders only had 2 buttons to push, and they both said "buy!" Some of the buying was outright, but we'd attribute most of the momentum to short-covering. That carries some implications for lock/float strategy in the coming days, and today's video discusses those in detail. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm CPI (m/m) 0.6 vs 0.4 f'cast, 0.8 prev Core Annual CPI 3.8 vs 3.4 f'cast, 3.0 prev Jobless Claims 376k