US core CPI inflation picked up from the prior month’s reading and was on consensus (chart 1). The table above shows the m/m numbers. CPI was up by 3.1% y/y (3.2% prior) with core up by an unchanged 4% y/y. The core acceleration alongside evidence that core service price inflation picked up again drove markets to ease off rate cut pricing a touch. {chart} Market Reaction: By the time the dust all settled the 2-year Treasury yield was up by about 3–4bps post-data. The USD is only slightly firmer on a DXY basis. The S&P500 initially fell at the open, and then shook it off to move on to a new all time record high; ... (full story)