Summary of FOMC Meeting Minutes and CPI report 04/12

The market on the 4th day had a volatile trading session with mixed macro news in the morning. On one hand, the CPI report showed optimism as headline and core CPI rose slower than expected, but real income continued to plummet for 24 straight months. The report pulled 10-year bond yields down sharply in the morning, creating rally momentum for the entire stock market before the bond market unexpectedly stabilized, pulling the 10Y from 3.34% back to 3.46% by midday, creating strong demand for the mid-day 10Y bond auction.

Meanwhile, de-risking activity across the market continued in line with the bond market trend, pulling major indices back to the starting line before the investor-expectation-contrary FOMC Meeting Minutes were released, creating pressure on the market and pulling most stocks into the red by the end of the session.

Summary of March CPI report: