Something has cracked, says NAB’s Gavin Friend, which has seen longer term bond yields falling, despite inflation concerns. Yet inflation remains a concern, even though PPI numbers in the US fell overnight.
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US CPI came in as expected. NAB’s David de Garis looks at this, plus the FOMC minutes, for hints of how the Fed will handle tapering and rate rises.
Markets are more attuned to the idea of a US rate rise next year, says NAB’s Ray Attrill, as the IMF warns central banks to act if inflation persists, which seems likely.
Energy prices are lifting inflation expectations. NAB’s Tapas Strickland says central banks are planning a faster path of tightening as a result. Could the BoE lift rates next month?
Soft US job s numbers won’t stop a taper from the Fed this year says NAB’s Rodrigo Catril. Meanwhile, inflation concerns remain as the US kicks off Q3 earnings season.
The impact of the Delta variant has not been as bad as expected, says NAB’s Rodrigo Catril, evidenced by strong ISM numbers from the US, hence a risk-on mood this morning. But inflation remains a concern around the world.
The floating of currencies has created a massive forex industry. @ProfSteveKeen says it has made life harder for speculators, which is a good thing, but the world missed a trick when it ignored Keyne’s idea of the Bancor. https://t.co/NJDPcI33JI