2024-07-11 01:05:00 ET
Summary
- The 10Y is back in the 4.25% to 4.30% area, and looking for an excuse to dip lower.
- The CPI report will decide, and the expectation is it will provide a route for lower yields (but watch services prices).
- In contrast to the US, eurozone markets do not see a rate-cutting cycle building.
- The 2s10s Gilt curve disinverted, but this may revert again in the near term.
By Benjamin Schroeder | Padhraic Garvey, CFA | Michiel Tukker
US CPI should be supportive, but pay attention to services price inflation which needs to calm more
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Rates Spark: U.S. CPI Is Key For Rates Ahead