The US core CPI rose 0.3% month-on-month, higher than market expectations of 0.2%, driving the short-term decline in the US bond yield curve. After the data was released, the market further increased its bets on interest rate hikes. The short end currently includes a contraction of about 23 basis points, which is higher than the 18 basis points before the data was released. On the same day, the 2-year US Treasury yield changed from the previous decline to an increase of about 5 basis points, while the long-term yield still fell by about 1 basis point. The 2-year and 10-year US Treasury yield spread narrowed by about 5 basis points from Thursday's closing, and the yield curve flattened out. Overnight index swaps show that by the end of the year, the market had accumulated a contraction of about 53 basis points, which is equivalent to fully accounting for at least two interest rate increases of 25 basis points each time.

The US core CPI rose 0.3% month-on-month, higher than market expectations of 0.2%, driving the short-term decline in the US bond yield curve. After the data was released, the market further increased its bets on interest rate hikes. The short end currently includes a contraction of about 23 basis points, which is higher than the 18 basis points before the data was released. On the same day, the 2-year US Treasury yield changed from the previous decline to an increase of about 5 basis points, while the long-term yield still fell by about 1 basis point. The 2-year and 10-year US Treasury yield spread narrowed by about 5 basis points from Thursday's closing, and the yield curve flattened out. Overnight index swaps show that by the end of the year, the market had accumulated a contraction of about 53 basis points, which is equivalent to fully accounting for at least two interest rate increases of 25 basis points each time.