In response to the latest inflation data, Treasury yields (^FVX, ^TNX, ^TYX) pull back from the 5% mark. December's Consumer Price Index (CPI), released Wednesday morning, showed prices rose as expected while core CPI increased at a slower-than-expected rate.
DWS Group's head of fixed income and head of trading, George Catrambone, sits down with Seana Smith and Brad Smith to discuss the bond market reaction to the latest economic data.
Catrambone says the CPI reading is "a sigh of relief" for the bond market. "You see that immediately within treasuries starting to rally, [and it's] probably a sigh of relief for the Fed as well," he explains. "Seeing that we're not reaccelerating, really, within inflation indicators, and there's some reason for hope that the Fed is not going to raise rates from here, I think bond markets are happy."
Watch the video above to learn more about the bond market reaction to the latest inflation data and what to expect from Treasury yields as Trump returns to the White House.
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This post was written by Naomi Buchanan.