US 2-year yields have completely erased the post-CPI move

US 2 year yields

The biggest moment in June trading was the surprisingly hot June US CPI report. That was the domino that led to the Fed hiking by 75 bps instead of 50 bps and kicked off the turmoil that followed.

Yet in the bond market, we’re now back to where we were before the release at 2.83%. That wraps up a round trip that ended at 3.45% and is looking more like a blow-off top now than a re-thinking of the Fed path.