Following up on the PPI release (discussed along with other core measures) discussed here, how have markets responded, in terms of Fed funds futures, the ten year rate?
Source: CME accessed 6/12, 6/13/2024, 1:30pm CT.
The trajectory of Fed funds implied by futures is further depressed.
The ten year yield also dropped. In perspective:
Source: TradingEconomics, accessed 6/13/2024, edited by author.
We have consistent reactions — except for the PPI release — in the nominal value of the US dollar, as shown in the below figure (over the same period):
Source: TradingEconomics, accessed 6/13/2024, edited by author.
Of course, the dollar’s value against a basket of foreign currencies is affected by events and expectations revisions abroad, as well as at home.
