- New York Fed 1-year consumer inflation expectations hit 10-month low
- US treasury auctions $32 billion of 10 year note today high yield of 3.330%
- US sells 3-year notes at 3.564% vs 3.550% WI
- European equity close: Strong gains start the week led by the German DAX
- US hotel occupancy in early-Sept passed 2019 levels for the first time since the pandemic
- CPI trading preview: Focus on the core or the headline?
Markets
- Gold up $8 to $1724
- WTI crude oil up $1.17 to $87.96
- US 10-year yields up 3.5 bps to 3.35%
- S&P 500 up 43 points, or 1.05%, to 4110
- GBP and EUR lead, JPY lags
FX price action was uninspiring on Monday and that's not a big surprise given the total lack of economic data on the schedule along with the Fed blackout. Tomorrow is the US CPI report and that has everyone watching and waiting.
The euro and pound both opened the week strong but gave a bit back in US trading, especially towards the end of the day. That was part of a broader US dollar bid that came after a pair of weak Treasury auctions. Those turned a rally in bonds into a selloff and raised questions about whether the Fed's QT program is weighing.
The dollar bounced was best seen in USD/JPY, which crept up to 142.80 from 142.15 at the lows. The moves were of a similar magnitude elsewhere.
Equities were strong but more than a few traders pointed out that the VIX also rose 4.7% today and that doesn't bode well for the future.
Commodity currencies were moderately stronger across the board in line with the general attitude. The loonie got some help from oil but it was the Australian dollar that was the top performing commodity currency on the day.
