Daily Archives: Aug 9, 2018 at 07:32 am EDT

5-Year Treasury Market’s Inflation Forecast Dips To 3-Month Low

Economists are expecting that US consumer inflation will hold steady in tomorrow’s July update while Fed funds futures are pricing in another rate hike at next month Federal Reserve meeting. Yet the implied inflation outlook via 5-year Treasuries bears watching in the days ahead as it suggests that a new round of disinflation could be brewing. If so, the case may be weakening for another dose of monetary tightening.
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Macro Briefing: 9 August 2018

Israel and Gaza launch missile attacks on each other: BBC
Ohio race inspires Dems to see path to House takeover in fall: The Hill
China responds in kind with latest round of US trade tariffs: MW
Trade war with US causing rifts within China’s leadership: Reuters
Turkey’s currency at new low against dollar as tensions with US rise: Bloomberg
US will impose new sanctions on Russia for nerve agent attack in UK: Reuters
World’s key central banks raising rates despite macro risks: Bloomberg
NYC puts restrictions on Uber and other ride-sharing services: CBS
Policy sensitive 2 year Treasury yield, at 2.68%, holds near 10-year high: