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US inflation keeps a final rate hike on the table
US consumer price inflation for September shows headline prices rose 0.4% month-on-month, and 3.7% year-on-year. The consensus forecast ahead of time was 0.3% MoM and 3.6% YoY. Meanwhile, the core rate, which excludes food and energy, came in at 0.3% MoM and 4.1% YoY as expected. This was the outcome we were forecasting, believing the consensus was a little low for headline inflation given the moves in gasoline prices (which rose 2.1% on the month). We’ve seen Treasury yields tick higher in the wake of the numbers, which is understandable given the 25bp drop in the 10-year since the end of last week caused by a ... (full story)