SHORT ANSWER
The core idea
CPI can move bond yields because inflation affects the expected path of central-bank policy and the real value of nominal fixed payments.
THE MECHANISM
What is happening underneath
An upside inflation surprise can raise expected policy rates and inflation compensation, while a downside surprise can do the opposite.
MARKET INTERPRETATION
How investors should read it
Real yields and breakevens help identify which component drove the move.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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