Reply To: Traders Market Weekly: Valuation Matters in Earnings Season


10-Yr: -28/32..3.064%.. USD/JPY: 137.53.. EUR/USD: 1.0029

Total CPI increased 1.3% month-over-month in June ( consensus 1.1%) after increasing 1.0% in May. Core CPI, which excludes food and energy, increased 0.7% month-over-month in June ( consensus 0.6%) after increasing 0.6% in May. On a year-over-year basis, total CPI was up 9.1%, versus 8.6% in May, and core CPI was up 5.9%, versus 6.0% in May.

The key takeaway from the report is that inflation pressures remained broad-based and elevated even when accounting for the slight dip in the yr/yr core inflation rate. Meanwhile, total CPI accelerated to 9.1% yr/yr, representing the fastest rate of increase since late 1981.

The food index was up 1.0% month-over-month in June and up 9.1% year-over-year.
The energy index was up 7.5% month-over-month in June and up 41.6% year-over-year.
The shelter index was up 0.6% month-over-month in June and up 5.6% year-over-year.
The used cars and trucks index was up 1.6% month-over-month and up 7.1% year-over-year.

Yield Check:
2-yr: +15 bps to 3.18%
3-yr: +14 bps to 3.21%
5-yr: +12 bps to 3.13%
10-yr: +10 bps to 3.06%
30-yr: +9 bps to 3.23%