The market is holding steady even after the release on consumer inflation came in hotter than expected.  Month to month saw headline CPI increase 0.4 versus consensus of 0.3, and core 0.2 versus 0.1.  On a year to year basis, the 1.9% change sees sequential increases for the first time since February.

There is no immediate fear of runaway inflation, but the news got Goldman Sachs to increase its odds of another rate hike in 2017 to 60% from 55%.

There is a red flag with shelter (housing), which saw the biggest monthly increase since 2005.

• Rent +0.5% m/m +3.3 y/y
• Owner +0.3 m/m +3.3 y/y

  

  This session feels very much like yesterday, where the market meandered until the final minutes of trading.  Other than buyer’s anxiety, not sure what would spark a repeat performance.  And yet, if it happens, I will not be surprised.