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Does Today’s Data Change The Outlook?

There were a few rate friendly tidbits buried in the CPI data, but for the most part, it was right on the screws versus expectations.  For those wondering about the tidbits, the core services prices excluding housing/rent declined noticeably.  The market reaction tells us the report was clearly “good” for rates, but was it enough to change anything in the bigger picture?  The unwillingness to rally past any range boundaries tells the story there.  Hurry up and wait for a collection of multiple additional economic reports spaced over a few months that cohesively suggest a shift.  Wish we could tell you how long you’ll be waiting…