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MNI (London)
LONDON (MNI)

Despite expectations of GDP growth exceeding 6.5% y/y and CPI inflation registering at 2.5% in 2021, St. Louis Fed President James Bullard used an interview with MNI published late Monday to push back against talk from investors and former policymakers about a near-term tightening of monetary policy, saying he was looking for a "more definitive end to the pandemic" before discussing a policy shift.

Unfazed by April's 4.2% year-on-year CPI print, Bullard is instead monitoring market measures like the spread between nominal Treasuries and inflation-backed bonds. The rise in TIPS-based inflation break-evens to around 2.7% on a CPI basis "suggests the committee will be able to move inflation somewhat above target for some time which is what the new framework is aiming for," Bullard told MNI.

MNI London Bureau | +44 203-586-2225 | les.commons@marketnews.com
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