Inflation - USD
BEs nudged a little higher with a strong PPI providing a green light against an inflation-friendly/neutral backdrop. CPI is now on the horizon.
Today’s Fed TIPS purchase helped support front-end BEs but the bull flattening nominal rally weighed on longer tenors.
BEs snapped back higher today after yesterday’s flow-driven hiccup. Inflationistas eye tomorrow’s Fed TIPS purchase operation.
BEs sellers emerge today as an energy rally lost much of its upward momentum intraday while nominal yields ground lower in the backdrop.
BE curve saw a solid flattening today, with the front end widening versus weakness in the back end of the curve. JP Morgan examines SDR swap trends.
With risky assets making new highs, BEs lifted and rebounded off yesterday's slump. JP Morgan finds front end valuations looking stretched.
BEs had a up then ultimately down day. The Fed buyback saw better subscription, sources note, but out of the buyback the 30y then the 5y softened.
Oil sold off sharply despite continued Suez Canal paralysis. However, BEs ultimately ignored Black Gold and rallied nevertheless.
New that a stuck container ship in the Suez Canal lit a fire in the energy pits that sparked a decent bid in front-end BEs today.
BE characteristically bear steepened amid today’s broader risk-off move despite the helping hand of a lightly attended TIPS purchase operation.