Pete Sessions Added US Notes Before the October 2022 CPI Release

Republican Pete Sessions, who represents Texas' 17th Congressional District, disclosed on November 11, that he bought US Treasury Notes between November 7 and November 9, ranking this as one of his top 5 trades over the last three years.

Congressman Sessions, who is usually an avid tech investor with top trades in Big Tech names like Microsoft, Nvidia, and Amazon, added at this time US treasury bonds to his Portfolio shortly before the October 2022 consumer price index (CPI) inflation report was released.

According to the disclosure, on November 7 he invested in two US Treasury Notes, $50,000 - $100,000 in the one with 0.125% coupon rate and expiry of 10/15/2023, and $1,001 - $15,000 in the one with 0% coupon and expiry of 1/3/2023.

Following that, on November 9, he invested a value between $15,000 - $50,000 in the US Treasury with a 2.75% coupon and expiry of 2/15/2024.

US treasuries have suffered the most in 2022 so far since the Federal Reserve Bank (Fed) initiated an aggressive rate hike campaign to bring down inflation. Until the CPI release on Thursday, November 10, 2022, inflation was rising almost nonstop pushing the September 2022 CPI to 8.2% year-over-year.

After the release of the October 2022 CPI on Thursday however, US bond yields recorded their steepest one-day decline in more than a decade since the consumer inflation reported was lower than expected, 7.7 percent for the 12 months ending October. This is much relief as compared to the 8.2 percent clip seen in the previous month. When bond yields are declining, it is pushing the prices of the treasuries.

Now that the CPI has come down a little, the odds are increasing that it could give the Fed more breathing room in terms of slowing down the pace of its aggressive rate hikes. If so, this would be positive for investments in US treasuries.