Treasury Action: yields jumped after the CPI report
Treasury Action: yields jumped after the CPI report, though it was the acceleration in the "real" average hourly (1.7% y/y from 1.3% y/y) and weekly (1.9% y/y from 1.4% y/y) wage prints that was the catalyst. The rest of the report was rather tame. While the FOMC is on hold for now, Fed Chairman Powell indicated that it's inflation that will move the needle, with policymakers focused on wage growth in particular. Those factors are being reflected in the bond market's actions. The 2-year yield is up 3.3 bps, having jumped to 2.539% from 2.525% ahead of the numbers. The 10-year is 2 bps higher at 2.708%, from 2.686%. The 2s-10s spread is slightly narrower at 17 bps as the front end of the curve underperforms, versus 18.1 bps at yesterday's close.