HSBC said Wednesday's US CPI report could be the next dovish catalyst, prompting markets to further reduce expectations for Federal Reserve rate hikes.
HSBC states that Wednesday's US CPI report could be the next dovish catalyst, driving markets to further reduce expectations for Federal Reserve rate hikes. The bank anticipates another set of soft inflation figures, following the lower-than-expected June CPI data. If confirmed, HSBC believes this would lead to lower US Treasury yields, a bull steepening of the yield curve, and receding rate hike bets, thereby creating a "Goldilocks" environment for a broad rally in risk assets.
Source:X@DeItaone · Source Link
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