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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