(3/3) Nomura: Our forecast for......>

US DATA PREVIEW: (3/3) Nomura: Our forecast for core CPI is 0.2% (0.211%) m-o-m,

corresponding to 2.1% (2.095%) y-o-y. As for non-core components, we are

expecting a rebound in food prices but a modest decline in energy prices. As a

result, we expect headline CPI to rise moderately by 0.1% (0.149%) m-o-m, which

translates to 1.9% (1.869%) Y/Y. Our forecast for CPI NSA is 256.290.

- SocGen: We expect inflation to dip from 2% to 1.8% while core stays at 2.1%.

- TD: We look for headline CPI to slow two tenths to 1.8% in May - a tenth below

consensus - on the back of a mild 0.1% seasonally-adjusted monthly

increase...Core inflation, on the other hand, should remain steady at 2.1% y/y,

reflecting a firm 0.2% m/m advance...A strong report can see the market reverse

the recent move lower in rates in whites and reds and put some bear flattening

pressure on the curve. As such, we favor leaning long 10y TIPS BEs, modestly

short duration and tactical short gamma via strangles on 10y tails.