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Steady Going Pre-US CPI

LATIN AMERICA
  • Steady going pre-CPI, with the USD modestly higher ahead of the April inflation release later today. Fed Funds implied rates are off overnight highs but on balance have nudged higher: 3.5bp hike for Jun (+0.5bp), 19bp of cuts to 4.89% in Sep (+1bp) before a cumulative 42bp of cuts to 4.66% Nov (+1.5bp) and 64bp of cuts to 4.44% Dec (+2.5bp).
  • Global equities are modestly lower, as European hours saw stocks fade after a more stable Asia-Pac session. G10 bond futures have gained, prompting the US 10y yield to retrace 3bps off the week's highs.
  • Focus for the Latam session ahead rests on the Brazilian industrial production release as well as Chilean CB economist survey.

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