Bond Investors Sell on CPI Numbers (ETF: IEF)

Consumer price inflation as measured by the CPI was up .3% which initially was a disappointment since now the rental component is finally kicking in to pressure the index. Don’t worry, the government has been rapidly trying to shift your attention from the "core CPI" to the "core PCE" (Personal Consumer Expenditure Index). Of course this too doesn’t include those pesky food and energy components.

Bond investors, described here previously as “tentative” and “not yet buying what the Fed is selling”, didn’t like CPI numbers and sold bonds yesterday.