Market expectations for Wednesday's CPI data lower🫣
The current market consensus is that core CPI will rise 0.3% month-on-month and 5% year-on-year, with some institutions (such as Goldman Sachs) predicting that core month-on-month growth will decline further to 0.2% due to sharp declines in auto prices and housing inflation. Favorable data background helped global fixed income markets stage a mitigating rebound after the recent sell-off. The 5-year Treasury yield fell 11 basis points on the day and also helped the stock market rise slightly after early weakness. In addition, the summer trading was relatively quiet.
