Good morning contrarians! Stock futures are up a bit led by banks as bond prices drop again ahead of the latest (dated) inflation data…

Perhaps if the CPI comes in cooler than anticipated it will give the Fed enough cover to pause rate hikes. But even then it will undoubtedly be well above the Fed’s 2% target, which means the Fed would be gambling with whatever credibility it has left should it decide to leave rates unchanged.

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This discussion is very much a topic for next week, used here just to illustrate how insignificant today’s CPI reading may be. Probably the banks will have more of our focus today anyway. There are very many questions that have arisen from the rescue package that was engineered over the weekend. Too many to address here, but we don’t know for sure that we’re out of the woods yet. That is the most pressing concern still and it doesn’t make for a very good environment for risk-taking, keeping in mind that markets hate uncertainty more than they hate bad news.

Porchester 🔺's avatar
It's so difficult to read into yield moves right now, it's a crazy world out there!



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