Break even rates for 10-year Treasury Inflation-Protected Securities, an indication of market
expectations for growth in consumer prices, fell to the lowest since Nov. 9 on Monday. The latest reading on consumer prices is due Wednesday, after the core CPI index rose less than forecast
in March and April. TIPS have faced “selling on concern we could get the third weak inflation print in a row and yet the Fed goes anyway,” said Michael Pond, a Barclays Plc strategist. “The
market is becoming increasingly concerned that would be a policy error.”
CPI and Retail Sales data will be released tomorrow at 15:30 (our time), and the FED decision is at 21:00 (our time).
If the data from the CPI and Retail Sales are better than expected, this will increase the chances of a FED move for a higher rates and this will be good for the USD. If data is worst than expected, will be negative for the USD but positive for the US indices.
Source: Bloomberg Pro Terminal
Trader - Senan Fuchedzhiev
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