Overnight Weakness, Limited CPI Impact, MBS Outperformance

There was a very high bar for today’s CPI to cause any serious market reaction due to all the new inflationary impulses that may be created by record volatility in energy markets that hasn’t yet made it into the official data. In other words, CPI is a time capsule for a bygone era and the market is already trading the implications on future inflation reports to the best of its ability using oil prices as a proxy. Bef…