Rick Santelli on Inflation, Bond Yields, and Market Reactions

Inflation Trends

• 📊 The year-over-year core CPI has remained flat at 2.8% for three consecutive months, indicating limited progress towards the 2% target.
• 📉 While the monthly inflation numbers were better than expected, suggesting potential cooperation in three and six-month forecasts, the overall year-over-year progress has been limited.

Bond Market Movements

• 📈 Both the 2-year and 10-year Treasury yields dropped aggressively following the CPI report and a strong 10-year auction.
• 🎯 The 10-year Treasury yield also saw a decline around 1:00 PM Eastern, influenced by the positive auction results.

Dollar Index Performance

• ⚠️ The dollar index is showing weakness and may challenge its lowest closes of the year, with close attention being paid to the 98.5 area.

Market Rally and Expectations

• ❓ The market's muted reaction to good news is attributed to significant gains already priced in, referencing the levels of the Dow, S&P, and NASDAQ on April 7th.
• 💡 The speaker suggests that good news may now be the "new flat" for the market, implying that further positive data might lead to sessions similar to the current one, with limited additional upside.