What we’re reading (7/13)
“Inflation Rose 9.1% In June, Even More Than Expected, As Consumer Pressures Intensify” (CNBC). “The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate. That marked the fastest pace for inflation going back to November 1981.”
“Bonds Slump As Inflation Surge Fuels Bets On 100-Basis-Point Fed Rate Hike” (Bloomberg). “US Treasury yields jumped after another hotter-than-expected inflation report kindled bets that the Federal Reserve could raise rates by as much as a full percentage point this month. The increase was led by shorter-dated securities sensitive to policy changes, with yields on two-year notes climbing as much as 16 basis points to 3.21% before paring the jump. That pushed the yield above those on 10-year notes by the most since 2006, signaling increasing risk that higher rates will stall economic growth.”
“U.S. Inflation Hits New Four-Decade High Of 9.1%” (Wall Street Journal). “The consumer-price index’s advance for the 12 months ended in June was the fastest pace since November 1981, the Labor Department said on Wednesday. A big jump in gasoline prices—up 11.2% from the previous month and nearly 60% from a year earlier—drove much of the increase, while shelter and food prices were also major contributors.”
“Texas’ Power-Grid Operator Is Asking Crypto Miners To Power Down As The State’s Electricity System Grapples With Sky-High Temperatures” (Insider). “Bloomberg reported that virtually all of the state's large-scale bitcoin-mining operations had screeched to a halt as of Monday, which gave 1,000 megawatts of electricity back to ERCOT. That amounts to about 1% of what Texas' grid can distribute.”
“Oil Falls To Three-Month Low As Recession Fears Spook Market” (Bloomberg). “West Texas Intermediate shed more than 8% to settle under $96 a barrel for the first time since early April. Rising virus cases in China and looming US inflation data are stoking concerns about demand. Meanwhile, dwindling liquidity is also exacerbating price moves. Money managers have become more bearish on the main oil benchmarks, cutting their net-long positions last week to the lowest since 2020.”
