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Stocks, Bonds, & Bitcoin Battered As 'Hot' CPI Sparks Surge In Rate-Hike Odds

Tyler Durden's Photo
by Tyler Durden
Wednesday, May 11, 2022 - 12:54 PM

Well that was unexpected... Core CPI rose more than every one of the 60-plus Bloomberg economists expected, putting The Fed back in uber-hawk mode.

Rate-hike expectations spiked...

Sending stocks reeling lower...

And bond yields higher, led by the short-end...

And cryptos puked with Bitcoin back below $30k......

As Matt Maley, chief market strategist for Miller Tabak + Co., says: “Very simply, this high inflation number has dimmed the hopes for many investors considerably that we’ve reached peak inflation. Therefore, the Fed will remain hawkish and it just might put a 75 basis point hike back on the table.”

But yesterday we were told it was all priced-in?

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