US PPI yy
- Prior was +0.9% y/y (revised to +0.8%)
- PPI m/m -0.1% vs +0.1% expected
Core:
- PPI ex food and energy YoY 1.8% versus 1.9% expected. Prior month 2.0%
- PPI ex food and energy MoM 0.0% versus +0.2% expected. Prior month 0.0%
- PPI Ex food and energy/trade 2.5% versus 2.5% last month (revised from 2.4%)
- PPI Ex food and energy/trade 0.2% versus 0.1% last month
The US dollar has softened on these numbers and a bid has returned to the front end of the bond market. This will harden some traders' belief that lower inflation is only a matter of time.
