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What to watch

MARKET INSIGHT
  • Today's economic data calendar is rather light, so the data focus will instead be on where tomorrow's US CPI print is expected to come in. The median expectation in the Bloomberg survey is that headline CPI will increase from 8.6%Y/Y to 8.8%Y/Y (albeit with some downside risks) while core CPI is expected to fall back on a Y/Y basis from 6.0% to 5.7% with upside risks.
  • There will be focus this morning on issuance, with the EU holding an NGEU syndication and auctions due from the Netherlands, the UK and Germany.
  • There are also a couple of notable speeches right towards the end of the European day - Fed's Barkin due to discuss the "recession question" and BOE Governor Bailey due to discuss R*. Both of these have the potential to be of interest to markets.
  • Against this backdrop there are also concerns about Covid-19 cases in China.

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