‘Cooler-than-expected’ PPI (along with lower inflation expectations from NYFRB’s survey) trumped ‘hotter-than-expected’ CPI this week and opened the floodgates for traders to bet on The Fed being dovish-er than they expect to be in 2024. chart Will The Fed comply? The odds of a cut in March have soared above 80% (despite all the FedSpeak jawboning away from that)… chart Expectations for 2024 rate-cuts exploded to new highs at 170bps (now fully pricing in 6 cuts and a 65% odds of a 7th cut)… chart And as rate-cut expectations soar, so the spread between 2Y yields and current Fed Funds nears record highs… ..

The news you see on this site are collected from reliable news sites. Therefore, original sources are used as much as possible.