Less Than 85bp Of '24 Cuts Priced Post-CPI, BBDXY Firms

Continued assessment of the U.S. January CPI data is seen.

• The breadth of the gains in inflation remains elevated in February, although not quite as pronounced as what was seen in January (see our most recent CPI data bullet for further details).
• That may be factoring in as some Fed rate cut premium is removed once again.
• Acceleration in the multi-month run rate of core and super-core CPI is also noted.
• ~84bp of Fed rate cuts are now priced through ’24 vs. 89bp pre-data.
• ~19bp of cuts are priced through the June FOMC vs. 20.5bp pre-data.
• 10+-Year Tsy yields move to fresh session highs.
• The broader BBDXY moves back towards initial post-data highs.
• S&P 500 e-minis and & Euro Stoxx 50 futures sit around pre-data levels after two-way moves post-data.