Why Yesterday’s Bad Treasury Auction Mattered to Markets

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What’s in Today’s Report:

  • Why Yesterday’s Bad Treasury Auction Mattered

Futures are modestly higher again on momentum as surging expectations for dovish global central banks continues to push stocks higher.

Economic data remained mixed as Chinese exports declined again but not as much as expected (-1.3% vs. (E) -2.0%) while EU Industrial Production beat estimates (0.9% vs. (E) 0.2%).

There was no new news on trade overnight and the situation remains essentially stalemated.

Today the only notable number is PPI (E: 0.1%) but that likely won’t move markets because investors ignored the solid CPI report from yesterday, so they’ll likely do the same to PPI today.

Put more directly, it’s going to take some pretty substantially bad economic data or very hot inflation data to break the dovish trance markets are in right now, and it’s not likely to happen today as there are no Fed officials speaking, either.