Making Sense

Over the week, US2s found support at the 4.75% level and US10s found support ahead of the 4.35% level.  U.S Monetary policy is in a restrictive territory and Fed projections show 75 bps of rate cuts into 2024. Stickiness of Inflation and reaching the last mile of inflation is a dominant concern for the Federal Reserve and the same has resonated in the Fed Speak. Fed's Barkin commented "I am in no hurry to cut rates" as echoes by Fed Williams and Fed Bostic.  However, the market paused repricing Fed Fund Rates over 2024 as the pricing largely converged with the Fed Projections.   USD index languished between the 103.60 and 104.25 levels. Fed Fund pricing for rate cuts into 2024 largely hovered around the 80 bps mark over the week before slipping to 92 bps post the ISM Mfg Release with 25 bps of rate cuts fully priced into the June meeting.  Yields High Low Close WoW ▲ Weekly Range US 2Y ...

Risk Sentiment is off to a poor start as Asian Equities are trading in the red to the exception of Japanese Equities. USDCNH is trading higher on PBoC Easing speculation which could come in as early as Monday and TWD is bearing the brunt on account of Election uncertainty. USD Index consolidated overnight closing 0.23% higher on the day ahead of the much anticipated CPI Report. Implied pricing for Fed Fund Rates shows 138 bps of rate cuts into 2024. Major Overnight Headlines An "Unauthorized" Post On X stated “Approval Of Bitcoin Spot ETF ”. Bitcoin prices dropped 1.85% after touching a high of 47897 post the SEC Clarification. Crude Oil prices continued to chop around and rose 1.5% The Atlanta Fed's GDPNow forecast for Q4 GDP was revised down to 2.2% from 2.5% in the previous estimate. World economy is estimated to have grown 2.6% during 2023, down from 3% in 2022 but stronger than the 2.1% growth it projected in June . Global growth, however, is expected to slow to 2.4...