Free Trial
ASIA

Coming up in the Asia-Pac session on Monday:

MNI

Coming up in the Asia-Pac session on Monday:

USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Looking ahead to US CPI

BONDS
  • Core fixed income has moved higher this morning, but remains in yesterday's range. The main headlines have concerned the impact of the hot weather across Europe with the Rhine river not impassible at a key point that could affect energy imports into Germany, as well as other international trade.
  • However, the focus remains on US CPI. Consensus has headline CPI slowing to just 0.2% M/M from an unwind in energy prices, whilst core CPI is seen easing from 0.7% to 0.5% M/M but after three sizeable beats. Analysts see various driving forces for the moderation in core CPI but only a limited easing in shelter after once again surprisingly to the upside in June at multi-decade M/M highs. The market reaction to Friday’s payrolls beat shows the potential for large moves, with significant two-sided risk to this release. The full MNI CPI preview is available here.
  • Fed's Evans and Kashkari are due to speak at 16:00BST / 11:00ET and 19:00BST / 14:00ET respectively to discuss the economy and inflation. These will both be worth watching after today's CPI print. BOE Chief Economist Pill will be holding an online Q&A on the BOE's reaction to the rising cost of living at 17:00BST / 12:00ET.
  • TY1 futures are up 0-8 today at 119-23+ with 10y UST yields down -1.5bp at 2.765% and 2y yields down -3.4bp at 3.238%.
  • Bund futures are up 0.69 today at 156.87 with 10y Bund yields down -3.4bp at 0.883% and Schatz yields down -2.4bp at 0.547%.
  • Gilt futures are up 0.41 today at 117.67 with 10y yields down -2.8bp at 1.940% and 2y yields up 4.1bp at 1.931%.
266 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Core fixed income has moved higher this morning, but remains in yesterday's range. The main headlines have concerned the impact of the hot weather across Europe with the Rhine river not impassible at a key point that could affect energy imports into Germany, as well as other international trade.
  • However, the focus remains on US CPI. Consensus has headline CPI slowing to just 0.2% M/M from an unwind in energy prices, whilst core CPI is seen easing from 0.7% to 0.5% M/M but after three sizeable beats. Analysts see various driving forces for the moderation in core CPI but only a limited easing in shelter after once again surprisingly to the upside in June at multi-decade M/M highs. The market reaction to Friday’s payrolls beat shows the potential for large moves, with significant two-sided risk to this release. The full MNI CPI preview is available here.
  • Fed's Evans and Kashkari are due to speak at 16:00BST / 11:00ET and 19:00BST / 14:00ET respectively to discuss the economy and inflation. These will both be worth watching after today's CPI print. BOE Chief Economist Pill will be holding an online Q&A on the BOE's reaction to the rising cost of living at 17:00BST / 12:00ET.
  • TY1 futures are up 0-8 today at 119-23+ with 10y UST yields down -1.5bp at 2.765% and 2y yields down -3.4bp at 3.238%.
  • Bund futures are up 0.69 today at 156.87 with 10y Bund yields down -3.4bp at 0.883% and Schatz yields down -2.4bp at 0.547%.
  • Gilt futures are up 0.41 today at 117.67 with 10y yields down -2.8bp at 1.940% and 2y yields up 4.1bp at 1.931%.