The rebound in underlying inflationary pressures within the US economy is proving that the brief summertime soft patch was a fourth pandemic-era head fake. It’s not that core inflation is running way off the charts again, but the brief undershooting period has given way to a renewed patch of overly hot readings. Markets reacted by driving higher yields across the Treasury curve while retaining a mild bear flattener on the day. The two-year Treasury yield jumped by about 6bps and the 10s yield increased 8bps post data. The dollar firmed and equities lost earlier momentum. Fed funds futures drove December contract ... (full story)