US bond yields fall, rate cut expectations harden after December CPI report

Summary: US CPI up 0.3% in December, above expectations; “core” rate also up 0.3%; Citi: core CPI at 3-4% annualized pace for past 5 months; Treasury yields down, especially at short end; rate-cut expectations harden; Citi: core goods prices weak, services inflation consistently much stronger; prices of non-energy services main driver again. The annual rate of US inflation as measured by changes in the consumer price index (CPI) halved from...

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