• Meanwhile in markets, Bunds and Treasuries have staged a remarkable recovery on the lower than expected US inflation reading on Tuesday. Surprisingly, equities are down over the past weeks. Which means there’s another BTFD opportunity.
  • At pixel time the 10y US Treasury yield was at 1.27, down 7bps from yesterday’s pre-US CPI levels. The less higher than expected inflation readings fit the Fed’s narrative that the inflation bounce is “transitory” (aka, a one-off inflation tax). And, lo and behold, stuff that drove up inflation to such extraordinary heights – used car prices of all things – are now deflating.

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