U.S. September inflation runs hot, bitcoin drops $1,000
The September Consumer Price Index rose 0.6% month-over-month and 3.7% year-over-year, above estimates. Core inflation also surprised to the upside, putting an October Federal Reserve rate hike back on the table.
U.S. inflation came in hotter than expected in September. Bitcoin dropped $1,000 and Treasury yields jumped as traders repriced Federal Reserve rate-hike odds.
US inflation just showed up hot. CoinDesk reports the September Consumer Price Index rose 0.6% from August, up from 0.4% and in line with forecasts. But the year-over-year number was the stinger: 3.7% versus 3.4% in August and above the 3.6% expected.
The damage across markets
Bitcoin fell $1,000 on the news to $82,800. The bond market got crushed, with the 10-year U.S. Treasury yield jumping 9.3 basis points to 5.308% and the 2-year yield soaring 13.1 basis points to 4.924%. Nasdaq 100 futures dropped 0.65%, S&P 500 futures lost 0.3%, and gold slumped 1.5% to $4,116 an ounce.
Rate hikes back on the menu
Ahead of the data, Federal Reserve speakers had hinted the central bank would likely raise interest rates another 25 basis points before year-end. Market pricing had expected a pause later this month and a hike at the final meeting of the year in early December. CoinDesk says this morning’s numbers just might put an October hike back on the table.
The takeaway: Hot inflation is squeezing risk assets again, and global macro flows don’t care about time zones.
Summary written by Oh Cannot from the original report by CoinDesk. Not financial advice.
