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Equities Offered, While Yields Surge on Higher CPI

DATA REACT
  • The e-mini S&P fall sharply on the back of the US CPI data, with the ESM2 contract dropping around 60 points to touch new lows of 3980.25 before stabilizing. In tandem, US 10y yields rally sharply, showing back above the 3.00% mark.
  • In currency markets, USD sees immediate strength, prompting the greenback to recover well off the earlier lows (the currency was the weakest performer in G10 this morning). EUR/USD is through overnight lows of 1.0526 to narrow in on the 1.0500 handle. Weakness through here opens the YTD and cycle lows of 1.0472 next.

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