CPI Preview: Good, Bad, Ugly
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What’s in Today’s Report:
- CPI Preview: Good, Bad, Ugly
- Where to Find Rate Cut Probabilities
Stock futures are modestly higher this morning as the bond market steadies ahead of tomorrow’s key inflation data while financial newswires were mostly quiet overnight.
Overseas, Taiwan’s headline CPI fell sharply from 3.1% to 2.1% vs (E) 2.5% in March. Domestically, the NFIB Small Business Optimism Index dropped to 88.5 vs. (E) 89.9.
Looking ahead to today’s session, there are no economic reports today and no Fed officials are scheduled to speak which is setting up a fairly quiet morning in the markets.
The one potential catalysts on the calendar today is the 3-Yr Treasury Note auction at 1:00 p.m. ET. Equity markets are watching yields closely here, so if today’s auction is weak and yields move higher this afternoon that will weigh on stocks and other risk assets. However, moves should be limited as traders position into tomorrow’s inflation data.
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