Markets Puke As CPI Sends Rate-Hike Odds Soaring

The hotter than expected CPI print – following a hotter than expected PPI print – has sparked chaos in markets this morning…

Most importantly, rate-hike expectations have soared with the terminal rate now over 4.85%…

Critically, the market is now pricing in 18% odds of a 100bps hike in November…

30Y Yields are nearing 4.00% for the first time since August 2011…

10Y yields spiked back above 4.00%…

And 2Y Yields are testing 4.50%…

The dollar surged higher…

Gold slammed lower…

Bitcoin plunged back below $19,000…

And futures are plunging…

This is the 8th market crash response of the last 10 CPI days.

Americans opening their next 401k statement 5 days before the midterms pic.twitter.com/EEkHhbFfgH

— zerohedge (@zerohedge) October 13, 2022