Menu

  • US CPI is key for rates ahead

    From think.ing.com

    The 10Y is back in the 4.25% to 4.30% area, and looking for an excuse to dip lower. The rationale for doing so can come from Thursday's CPI report for June. The May report had enough there for us to pivot from being bearish on Treasuries to positioning for a more definite rate-cutting tendency ahead. Our view having seen that report was that it was repeatable in June, and beyond. If that is the case, the rate cut discount for September can harden further. The June CPI inflation report will be followed by the June PPI report and then in a couple of weeks we'll get the PCE deflator. As it is we're shaping up for ... (full story)

Hello
Any one guide me or clear my concept about US CPI !!! Is it 4.25% or 4.30% ?? Or 0.3%
Regards
( The 10Y is back in the 4.25% to 4.30% area, and looking for an excuse to dip lower. The rationale for doing so can come from Thursday's CPI report for June )
Attached Image (click to enlarge)
Click to Enlarge Name: IMG_20240711_100223.jpg Size: 89 KB
  •  Guest
  • | IP XXXX:88e3:4f2c
4.25% - 4.30% is actually the 10-year bond as you can see in the news calendar..
  •  Guest
  • | IP XX.XX.17.121
this image related CPI But that 10y bond, analysts used of the bond rate for forecast rate of fed
  •  Guest
  • | IP XXX.XX.71.167
Just a simple way to interpret CPI:

IF CPI Y/Y (Year-on-Year), drop below 3.0% and stay there for a quarter. Then Fed will likely lower rate (at least once) this year. Fed is targeting 2.0% but anywhere between 2.0 - 3.0 % is a "comfort" zone for the Fed and given that the interest rate is on the "high" end, they will lower it down gradually to the "middle".
  • New Comment
  •  Guest
  • | IP XX.XX.9.171
Join CC
  • Story Stats

  • Related Stories