Today’s market buzz

Stronger-than-expected October payrolls and CPI reinforced December Fed hike bets. Governor Waller previously said a 50 bps hike should be considered if core CPI rose 0.3% MoM or more; the latest reading was 0.3%. Dallas Fed President Logan sees at least two more 25 bps hikes as necessary. Two-year Treasury yields surged after CPI. Market odds of a 50 bps December hike briefly reached ~15% before easing to ~10%, while 25 bps remained the base case.