Daily Flows & Insights – Markets Hold Their Breath Ahead of U.S. CPI

Daily Flows

  • With the NCD market a little quieter this week we have seen some renewed interest in T-Notes given there is plenty on offer from 1 to 4 months at present
  • BBB-rated banks, aiming to retain funds, are compelled to offer higher rates compared to major banks. They are compensating investors for accepting the  higher credit risk, with standout rates reaching 5.15% for a 4-month duration.
  • NCD margins remain steady, hovering around the +40/+45 mark for a 3-month duration.

Markets Hold Their Breath Ahead of U.S. CPI

  • Market activity was subdued yesterday as participants await the release of the U.S. Consumer Price Index (CPI).
  • Financial markets are adjusting their expectations regarding potential rate cuts, reacting to recent commentary.
  • The U.S. economy’s robust performance implies that the Federal Reserve may have more room for manoeuvring, with less pressure to pursue aggressive policy measures.
  • Today, data on domestic consumer confidence and business conditions will be released.
  • Tomorrow, the U.S. CPI figures are anticipated to be published early in the morning, with an expected year-on-year decline of 2.9% following the previous 3.9% decline.
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Curve Team
Jack Pedersen