U.S. inflation in June came in far softer than forecast, likely putting on hold what were fast-rising expectations for imminent Federal Reserve rate hikes.
The Consumer Price Index (CPI) decline 0.4% in June versus economist forecasts for a decline of 0.1% and May’s sharp rise of 0.5%.
On a year-over-year basis, CPI was up 3.5% versus forecasts for 3.8% and 4.2% in May.
Core CPI, which excludes food and energy, was flat in June, versus forecasts of 0.2% and May’s 0.2% increase. On a year-over-year basis, core CPI rose 2.6% against expectations for 2.8% and 2.9% in May.
Bitcoin added to earlier gains following the soft numbers, rising to $63,400, up about 2% over the past 24 hours. U.S. stock index futures also rose, the Nasdaq 100 up 1.25%.
Bond yields fell sharply, the U.S. 2-year Treasury down seven basis points to 4.19% and the 10-year down five basis points to 4.56%.
Source: Original Article
