The market reaction to today's data slate is reminiscent to CPI.
It's a three-parter with an initial hawkish reaction, followed by a complete retracement, then a renewed push towards the knee-jerk.
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The data overall was a mixed bag with a hot PPI and good jobless claims counteracted by a weaker retail sales print.
The FX market is taking cues from bonds, with yields following the same path. US 2s were last up 3.6 bps to 4.657%. Critically, US 10 years are back above 4.20%, which has been a key pivot point in 2024.
The rest of the day's calendar is light with only US business inventories at 10 am ET. The Fed is in the blackout period ahead of next week's decision.
