CPI - Banks Selling What They Can | Benzinga
Sell What You Can
The August CPI report did not alter the broad disinflationary trend, though it lowered the probability of the death of the last rate hike DOT. CPI also whipsawed investors for the second consecutive month, the better-than-expected July report failed to reverse the August bear steepening risk-off episode, and while the UST market initially reacted negatively to the August report, the bear steepening was brief and by midday the rates in the belly of the Treasury market (2–5-year notes) fell by 4-5bp. Thursday’s retail sales report had a similarly neutral impact on the economic outlook: negative revisions to June and July offset marginally better than expected August sales, leading to a 50bp reduction to the Atlanta Fed personal consumption and GDP tracking estimate models. Negative guidance from low-cost airlines at an industrials conference triggered questions about the strength of the consumer, our view remains that goods spending is likely to improve marginally, but the larger services sector is likely to weaken ...