MIKE DOLAN: Edgy bond market gobbles up ‘immaculate disinflation’ and rate cut hopes
Investment world seems happier than before to buy bonds even after more than 20% losses on benchmark Treasury exchange traded funds
16 November 2023 - 05:00
London — The scale of the debt market reaction to October’s US inflation undershoot partly reflects sheer relief in what is now one of the biggest bond market bets of the century so far.
While headline and “core” annual consumer price inflation rates were just 0.1 percentage point below forecast, at 3.2% and 4% respectively, it is enough to refire the disinflation story, cement peak Federal Reserve rates here and add a quarter-point rate cut into the futures curve for 2024...
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