by David Brady
Sprott Money
Today, we got the latest CPI numbers, and they were explosive.
Headline expectations were for a 7.3% increase year-over-year. It came in higher at 7.5%. It may not sound like much, but that’s the highest CPI since 1982. The core number rose 6.0% relative to expectations of 5.9%. Yet again, the highest level since 1982, 40 years ago!
Rate hike expectations soared. The 10-Year yield jumped to 2%. Real yields also rose to -0.47%. The dollar loved it and snapped back to 96. Stocks came under pressure again, as did Gold and Silver.
The silver lining to all of this is that the Yield Curve is flattening rapidly. This signals that the almighty bond market doesn’t buy the rate hikes.