We just got the second of three monthly inflation reports. The Producer Price Index, or PPI, gained 0.5% in June, more than the 0.3% forecast by economists. YOY wholesale inflation is now running at just under 5%. So-called "core" PPI was up 0.2% on the month, in line with expectations. But even the core PPI is now up 1.9% YOY, up from 1.4% at the start of the year.
Bonds not liking the numbers in the early going, with 10-year Treasury Note futures recently down 10.5 ticks.