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Market Extra: Traders are pricing in annual pace of U.S. consumer price gains at around 6% or higher for the next three months

Market Extra: Traders are pricing in annual pace of U.S. consumer price gains at around 6% or higher for the next three months

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After months of shrugging off the prospects of persistently higher inflation in the U.S., interest rate traders are now coming to the realization that price pressures aren’t going away and significantly readjusting their expectations. So-called “fixings,” which trade as derivatives on the likelihood of where future consumer-price gains will land, are now at levels that imply a headline year-over-year CPI print of 5.9% in October, and 6.4% in both November and December, said Tim Magnusson, partner and senior portfolio manager at Garda Capital Partners LP in Minneapolis.

...read full article on Market Watch

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