Bonds & Rates
Home›Bonds & Rates›Economy›Bonds rise modestly ahead of CPI, outlook hinges on in…
Bonds rise modestly ahead of CPI, outlook hinges on inflation data
Mortgage News Daily said bonds have shown resilience Tuesday, helped by a typical lack of surprises in the first half of an auction week and a same day jump in oil prices.
Bonds improved modestly on Tuesday in a resilient move ahead of the next CPI release, according to Mortgage News Daily. The outlet characterized the trading as somewhat optimistic, even while noting that market reactions could change quickly if CPI runs hot.
Mortgage News Daily pointed to oil as a factor that appeared to limit the rally. It noted that bonds remained tied to oil prices, and oil closed higher on the day.
The outlet also said the timing matters, since it is usually less of a surprise when bonds struggle to rally during the first half of an auction cycle week. With CPI due on Wednesday, Mortgage News Daily added that tame data could allow bonds to respond more than normal to the figures, while a spicy CPI would likely push back against the more optimistic narrative.