US September core CPI exceeded expectations, leaving a Fed rate move in October
on the table. After the release, S&P 500 futures reversed earlier gains and fell
0.3%. The 10-year Treasury yield rose about 10bps to 5.318% (5.19% pre-release;
5.22% on Tuesday). The 2-year yield, more closely linked to Fed policy, jumped
13bps to 4.92%. Market pricing for a 25bp October hike increased, though if the
decision is finely balanced the Fed may prefer to pause ahead of the US
election.
