Market remains calm with several data releases👇
Extremely quiet day on Tuesday ahead of CPI with traders carrying much lower risk positions after last week's yield induced stop-outs. 2yr yields continue to struggle breaking out of the 5% psychological level, while the yield curve appears vulnerable to a snap higher as flattener positions remain crowded. Data was similarly light with NFIB small business optimism closing to the highest levels since last November, while the share of businesses raising prices slipped to 2.5 year lows at just 29%. As it has been the case for a while, soft survey data continues to diverge and has been over-pessimistic about the economic outlook, while hard activity data keeps marching to the upside and pushing recession fears further out.
