• Meanwhile in markets, we have an eerie silence ahead of this afternoon’s US CPI figures which could tilt the odds in favor of a 50bps March hike. OK, that’s overdoing it with the hyperbole. But the CPI figures are an important data report, and we could see sizeable moves.
  • Ahead of the figures, the bond market is giving the Fed even less room for tightening. The key 2y/10y Treasury spread traded at a new low of 57bps on continued underperformance of the 2y while the 10y is still refusing to trip over the 2.00-hurdle.

 

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