CPI Report Looms as Markets Eye Potential Rate Cuts and Inflation Impact
TL;DR
The upcoming US core CPI report on Wednesday poses a challenge for long positions in the bond market, with expectations of stable inflation figures potentially limiting bullish sentiment on Treasuries. Despite a year of decent returns, mutual funds are reducing long-dated securities ahead of year-end. Meanwhile, the European Central Bank is expected to cut rates, with markets pricing in further reductions into 2025, although long-term uncertainties remain. Near-term volatility in EUR rates has decreased, but geopolitical and economic factors could drive future rate movements.
- Rates Spark: CPI Wednesday a test for longs ING Think
- CPI likely to support a December rate cut: Economist Yahoo Finance
- Treasury yields nudge higher as CPI inflation report looms MarketWatch
- Inflation Data, ECB Rate Decision, Broadcom Earnings: What to Watch This Week The Wall Street Journal
- How the Stock Market’s Santa Rally Could Be Stolen by an Inflation Grinch Barron's
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