https://www.investopedia.com/articles/bonds/09/bond-market-i... ("Rising inflation reduces a bond’s purchasing power, often leading to higher interest rates and impacting bond prices and yields.")

https://www.pimco.com/us/en/resources/education/bonds-102-in... ("Apart from purchasing power, inflation can influence bonds in another way. When inflation rises above a certain level, interest rates also tend to rise as central banks try to put pressure on consumers to reduce spending. In response, bond prices fall which can reduce their total return.")

> The second link is current prediction for fed rate changes, which doesn't help anyone understand changes from this PPI report, and the last link is the yield curve, which just shows that long term rates are higher than short term rates (generally seen as indicative there's no near term recession risk).

The second link predicts forward interest rate changes by the Fed based on underlying futures contract market activity, activity that is driven by...released inflation data impacting market participant activity.

Understanding the CME Group FedWatch Tool Methodology - https://www.cmegroup.com/articles/2023/understanding-the-cme... - January 24th, 2025

System: "Economic data and indicators -> Market impact -> Forecasts based on market changes -> Fed decisions and announcements"