'Cooler-than-expected' PPI apparently trumps 'hotter-than-expected' CPI and the markets are reacting 'dovishly' with rate-cut expectations soaring.
The odds of a March rate-cut have jumped back up to over 75%...
And the market now expects 160bps of cuts in 2024...
2Y yields tumbled to 8-month lows...
Which has forced a dis-inversion of the (2s30s) yield curve..
For the first time since October...
And gold is bouncing too...
Ugly-ish bank earnings data makes the case even stronger for The Fed to start cutting in March - as we detailed here and here - and PPI is just the icing on the cake.
