Analysts: US CPI will trigger a market sell-off even if it is only slightly higher than expected

Even if Wednesday's U.S. inflation report is only slightly above expectations, it could trigger a sell-off in bonds and stocks, Russell Investments analyst BeiChen Lin said in a note. The investment strategist said Friday's unusually strong U.S. jobs report appears to have awakened concerns about inflation. "While we think Treasury yields are attractive at current levels, we still think investors would be better off sticking close to their long-term allocations unless there is a more substantial rise in yields," he said. Economists surveyed by The Wall Street Journal expect the U.S. CPI to increase 2.9% year-on-year in December, up from 2.7% in November. The annual core inflation rate is expected to remain unchanged at 3.3%, according to the survey. (Jinshi)