Treasury Rates and Energy Scream Higher on Hot CPI/PPI as Metals Fade Ahead of Near-Certain Fed Hike
Hot CPI and PPI prints sent energy and Treasury yields screaming higher. Gold, silver, and miners faded. A September Fed hike is nearly locked in at 87%.
Source: Peak Prosperity
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DW NOTE
The Strait of Hormuz has been effectively closed for two months, cutting global oil supply by 6%. That's not a price signal — that's a supply shock working its way through every energy-linked asset. CPI at 4.8% annualised and PPI at 11.5% annualised aren't inflation prints, they're confirmation that closing the world's most important energy chokepoint has consequences the Fed can't print away.