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The Inflation Hydra pops again taking the yields sharply higher and 16 bps of repricing seen in FFR

The technical view prevailed and the internals of the U.S CPI data were not encouraging. Core Services Inflation ticked higher. The Rent of Primary residences moved lower from prior month , rising 6.09% yoy, 0.36% mom (wt 7.71%) but the OER (Owners' Equivalent Rent) rose 6.23% yoy, 0.56% mom (wt 26.02%). The much awaited decline in Core Services Inflation and the Shelter Inflation eludes.  Snapshot YoY MoM Prior YoY Prior MoM 2023 High 2023 Low               CPI 3.11% 0.31% 3.32% 0.23% 6.36% 3.05% Food 2.56% 0.39% 2.73% 0.21% 10.13% 2.73% Energy -4.34% -0.91% -1.84% -0.21% 8.59% -16.68% Core CPI 3.87% ...

Ahead of the U.S. CPI Release - Expectations and What to watch in the internals / Fed Fund Pricing / Technical Levels

  Overnight U.S. S&P scaled fresh peaks of 5052 but closed the day 0.10% lower. USD Index closed flat on the day , awaiting a fresh impetus for the next leg. USTs closed flat on the day. Yields High Low Close DoD ▲ US 2Y          4.49          4.45          4.48                -0.60 US10Y          4.20          4.15          4.18                 0.40 US2s10s        -0.29     ...