Oftentimes when everyone is expecting a big, market-moving economic data point the price action disappoints but that wasn't the case today. A hot CPI reading set off a bloodbath in bonds. Partway through US trading though, dip buyers bought US stocks but later St Louis Fed President Jim Bullard delivered the coup-de-grace as he called for 100 bps in rate hikes by July 1.
- S&P 500 down 83 points to 4504, or 1.8%
- Nasdaq -2.1%
- DJIA -1.5%
- Russell 2000 -2.1%
As big as those moves were, they were much bigger in bonds. The rise in two-year yields was the most in a single day since 2009.
Treasuries:
- 2s +26 bps to 1.61%
- 5s +16 bps to 1.96%
- 10s +12 bps to 2.05%
- 30s +10 bps to 3.40%
2-year yields:
