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European Inflation Keeps The Pressure On

US TSYS

Firmer than expected CPI data out of Spain adds to the cheapening bias derived from Australian retail sales and the German NRW CPI. TYU3 registered a fresh session low as a result, before stabilising to last trade -0-10, 0-01+ off worst levels, while cash Tsys are 3-5bp cheaper as the curve bear flattens. FOMC-dated OIS shows ~31bp of tightening through November, with ~66bp of cuts then showing through June ’24, as markets look through Fed Chair Powell’s latest round of commentary, which saw him re-flag that the majority of the FOMC sees at least 2 rate hikes by year-end, as well as continued uncertainty re: credit tightening stemming from the well-documented regional bank headwinds.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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