US Inflation Traders to Use Untested Fallbacks for Missing CPI

The $7 trillion market for securities linked to US inflation will employ fallback mechanisms for the first time after the longest government shutdown in history derailed economic data collection.

The nation’s Bureau of Labor Statistics said it was cancelling its October consumer price index report, saying it was unable to retroactively collect some data. The inflation-protected segment of the US Treasury bond market and US inflation derivatives both use the CPI to determine how much investors get paid.