Organization: January CPI basically meets expectations, 10-year US Treasury bond yield hits new low for the year.

Allianz's chief economic adviser, Mohamed El-Erian, stated that the U.S. core CPI inflation data matched market expectations perfectly, while overall CPI was slightly lower than expected. This is good news. However, what is not so optimistic is that, as shown by other inflation data, the U.S. economy has now entered its sixth year of inflation rates persistently above the Federal Reserve's target. Specifically, the monthly core CPI in January remained stable at 0.3%, in line with expectations; while overall CPI was 0.2%, slightly lower than the market's expected 0.3%. Annual inflation indicators both slightly decreased to 2.5% and 2.4%. The bond market reacted quickly to these data, initially pushing the yield on 10-year U.S. bonds down to 4.08%, reaching the lowest level so far this year.