Three Keys to a Bottom Updated (Not Good)
What’s in Today’s Report:
- Three Keys to a Bottom Updated (Not Good)
- Weekly Market Preview: All About the Fed
- Weekly Economic Cheat Sheet: Survey Data in Focus
Global stocks are trading sharply lower and bond yields rose to new multi-year highs overnight amid fears that the Fed is getting more aggressive into an economic slowdown.
In the wake of Friday’s hot CPI report, rate markets are now pricing in a 75 basis point hike by the Fed in the next three months which saw the 10s-2s spread invert overnight underscoring renewed and growing recession worries.
Looking into today’s session, there are no notable economic reports, and no Fed officials are scheduled to speak.
There are two Treasury Bill auctions at 11:30 a.m. ET (3-Month Bills and 6-Month Bills). And while they are typically lesser followed, the results could shed light on market expectations of Fed policy in the coming months and if we see rates continue to surge higher, especially those with shorter duration, then concerns about a more aggressive stance by the Fed will likely keep pressure on risk assets today.
