PPI pushed September rate hike odds up in the futures markets. The Fed Funds futures implied odds of a September hike increased to 68%. Today's move is different in an important way. The longer end of the SOFR and Fed Fund futures curves moved notably as well. The SOFR curve has moved up between 10-11.5 bps through all 27 and 28 contracts. Basically, pricing in ~40% higher chance of an extra hike. This is a change from recent volatility that largely moved the timing of fed increases but had relatively small impact on the final level of the expected hiking cycle. The SOFR move is reflected in the FF futures where the implied probability of one or two hikes by June 27 decreased and the probability of 3+ hikes increased notably (from 52% to 67%)