The market reversed their gains after a small rallyđ
The seemingly softer CPI, combined with a small jump in initial claims (+21k to 248k) shook markets into an initial risk-on move, with 10y yields falling about 5bp immediately after the figure and the SPX rallying ~0.8% within the first 1.5 hours. However, reminiscent of last Friday's NFP move, which saw markets reverse their gains abruptly after what was supposed to be 'goldilocks'-friendly data, the same happened yesterday where 10y yields saw a ~15bp round trip and the SPX suffering a -1.6% peak-to-trough sell-off to see prices end their sessions at their respective lows.
