Disinflationary daydreaming

Link to slide deck: https://bit.ly/3rDYt9n   -

Today we look at incoming data and how it will impact the yield curve, suspecting that weak data and the key Friday US PCE inflation release will see the market marking the forward Fed expectations lower, seeing this week's Fed rate hike as the last for the cycle, even if tomorrow's FOMC meeting will likely see the Fed maintaining optionality for the possibility of another hike. The ECB is certainly set for a more dovish turn, and we eye EURJPY downside risks in coming months. In earnings, we note the incoming semi-annual report from LVMH today and Google and Microsoft after the US close. This and more on today's pod, which features Althea Spinozzi on fixed income and John J. Hardy hosting and on FX.

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Intro and outro music by AShamaluevMusic