MUFG Securities Americas rates......>

US DATA PREVIEW: MUFG Securities Americas rates strategist John Herrmann eyed

today's 8:30am ET US July CPI and said his "models forecast a LOWER gain in the

total CPI Index of +0.1116% mom (rounded to +0.10% mom) versus consensus

estimate +0.20% mom. On a year-over-year basis, our models forecast a +1.723%

outcome (rounded to +1.70%) LOWER than the consensus estimate +1.80% yoy." 

- He adds "for the core CPI Index, our models forecast a +0.1554% mom outcome

LOWER than the consensus estimate +0.20% mom. On a year-over-year basis, our

models forecast a +1.7336% outcome (rounded to +1.70%) versus consensus estimate

+1.70% yoy. Since our forecast for the core CPI index is so close to where it

may either round UP or DOWN, it is difficult to say what will be the outcome" in

CPI.  

- Meanwhile JPM economists forecast US headline July CPI would fall 0.04%.