They're not reacting to CPI inflation, but rising interest rates. Markets expect monetary policy to keep tightening in response to CPI inflation. When Fed is e

They're not reacting to CPI inflation, but rising interest rates. Markets expect monetary policy to keep tightening in response to CPI inflation. When Fed is expected to ease monetary policy, these assets will start going up. It depends on how the economy reacts more broadly to rising interest rates. These assets can be seen as a hedge to easy monetary policy, rather than a hedge to CPI inflation.