The latest inflation reading lit up the bond market and with it the odds that the Fed accelerates the pace and size of rate hikes. A higher than consensus print drove the 2-year Treasury yield about 18 bps higher and the 10-year yield about 9bps higher in a bear flattener move. The dollar took flight and the S&P is down almost 3% on the day so far. Fed funds futures are pricing a few basis points more than a half-point rate hike next week and material odds of a 75bps at the July meeting. The Fed has made it clear it will be considering a 50bps move next week and so given its emphasis upon avoiding surprises and ... (full story)