Bond market steeps after CPI report, Fed rate cut expectations warm

According to Jinshi data, after the release of the CPI report, the bond market experienced a bull market steeper. Analysts expect the Federal Reserve to lower interest rates and interest rates will fall to 100 basis points. Although overall inflation data meet expectations, details show that price pressure exists. Fruit and vegetable prices rose 1.6% month-on-month, automobile fuel prices rose 1.8% and tobacco prices rose 1.0%. Household food prices rose 0.6%, the largest increase in three years. The United States, as a net importer of food, may be greatly affected by tariffs. Among groceries, meat prices rose 2.7%, the biggest increase in four years, driven mainly by beef. Inflation data will not prevent the Fed from cutting interest rates, but it shows inflationary pressure in some areas of the economy.