The December Consumer Price Index (CPI) showed that overall inflation rose 0.4% for December 0.1% higher than expected.

Energy rose 2.6% which is 40% of the CPI increase. Food also increased by 0.3% higher than expected.

The Core rate, which strips out food and energy prices only increased 0.2%, lower than the 0.4% expected. Lodging is down, Air Fares are up due the above mentioned energy prices.

The Core is what triggered the Bond market to react in a Rate Positive direction. see below.

If you follow my post, this would be counter intuitive. Enjoy the Graph below. Remember, up is lower rates.