What to Tell Clients Who Worry About U.S. Treasuries
What’s in Today’s Report:
- What to Tell Clients Who Are Worry About U.S. Treasuries.
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Futures are little changed following a mostly quiet night of news as investors look ahead to today’s CPI report.
Politically, a “Continuing Resolution” to fund the government will be voted on in the House today and if passed, will avert a government shutdown.
Economically, the UK unemployment rate and German ZEW Business Expectations Index both beat expectations (although they aren’t moving markets).
Today focus will be on the CPI report and expectations are as follows: CPI (E: 0.1% m/m, 3.3% y/y), Core CPI (E: 0.3% m/m, 4.1% y/y). Generally speaking, numbers that show core CPI is continuing to decline will be welcomed by markets. While readings that imply the decline in inflation is “stuck” or inflation is bouncing back, will likely result in declines in both stocks and bonds.
We also have several Fed speakers today including Barr, Mester, and Goolsbee. We’ll be watching for their reaction to the CPI report. If it makes them more hawkish that’s a negative and more dovish, a positive).
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