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Drift Higher With Tomorrow’s CPI In Focus

US TSYS

Treasury futures have drifted higher through the European morning, currently +0-07 at 109-15+.

  • Nonetheless, a technical downtrend remains intact following Monday's move lower.
  • Overnight news flow saw ex St Louis Fed president Bullard express an expectation for three Fed rate cuts this year.
  • Current Fed Funds pricing is little changed on the day, with just over 60bps of cuts priced through the remainder of ’24.
  • Other speakers (Kashkari and Goolsbee) weighed in on the latest US jobs report (MNI’s review is here).
  • US cash yields are 2 to 3.5bps lower today, with the belly of the curve outperforming.
  • NFIB’s small business optimism survey is the only scheduled data release today, with no Fed speakers due either.
  • Focus remains on tomorrow’s CPI and Thursday’s PPI reports.
  • MNI’s CPI preview will be released later today.

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