A surprise CPI print smashed expectations and rate-hike bets were cut straight down at the ankles—bond bulls are back.

CPI came in below expectations, weakening bets on a July rate hike by the Federal Reserve, with the probability falling to about 20%. U.S. Treasuries rose, with the 2-year yield once dropping 14 basis points to 4.14%, the largest single-day decline since February. The swap market also showed the probability of a rate hike falling to around 20%. Analysts said the data came in across the board below expectations, and the chance of a rate hike in the near term has essentially disappeared; as a result, the market is bullish for bonds, and maintaining rates unchanged remains the baseline expectation.