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Markets sideways post-PCE

CREDIT MACRO

US Economist: "Core PCE Trends Sub-2%, Supercore 3-Month Closing In
Core PCE: No surprises in the recent M/M trend (certainly compared to the steer from yesterday’s Q4 advance) does indeed see the 3-month rate slow to 1.5% annualized as a strong Sep drops out.* The 6-month rate held at 1.9% annualized for the second month running.* “Supercore”: The 3-month slowed from 3.0% to 2.2% annualized. The 6-month increased a tenth to 2.8% annualized, where it’s largely plateaued for three months. Both rates are at lows since late 2020."

Rates selling off a tad, S&P futures unch - Intel the only big mover in pre-market. €IG eqv's having a better day (+0.6%) thanks to index heavyweight LVMH's post-earnings rally - pass through will be limited for credit - its high-grade bonds are 1-3bps tighter & similar story in close comp's Kering & Richemont's curves. Index still skewed firmly tighter pointing to the 7th straight session tighter.

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