This is a big week for two big issues troubling the bond market, namely inflation and the US federal budget deficit. The BIG event will be September's CPI (Thu). This time, September's PPI (Wed) will be released the day before instead of the day after the CPI. The headline inflation rates of both were inflated by energy prices, particularly gasoline prices (chart).
The core CPI will probably be inflated by an increase in heath insurance, which is a very funky and volatile component of the index (chart). It was down 33.6% y/y during August while the more sensible PCED measure was up 3.3%.
