Morning, Traders!
It is Monday the 12th of December, and we certainly have a quiet day on the docket today.
You could call it the calm before the storm, in a week that holds the US CPI print, FOMC rate decision (as well as the release of the latest Summary of Economic Projections), ECB Rate Decision, US Retail Sales, and Quad Witching on Friday to wrap up the week!
Nonetheless, here are some of the things to keep in mind during today's session.
Sentiment
The path of US inflation in 2023 may have more surprises in store after a year in which consumers suffered the biggest cost-of-living hit in 40 years, spurring steep interest-rate hikes by the Federal Reserve and spooking investors.
According to US Treasury Secretary Janet Yellen, inflation will be much lower by the end of next year if there are no unexpected economic shocks.
Wall Street looks to Fed Chair Jerome Powell and his top two lieutenants for the most explicit communication on monetary policy, but leading hawks provide guidance that is almost as important.
Powell has history on his side, as he and colleagues disagreed with Wall Street about how long interest rates would remain high in 2023.
Docket
11:00 ET
NY Fed Inflation Expectations, A survey of consumer expectations.
11:30 AM ET
US sells $40 bln 3-Year Notes
US sells $45 bln 6-Month Bills
13:00 ET
US sells $32 bln 10-Year Notes
US sells $54 bln 3-Month Bills
Speakers
15:40 ET
BoC's Governor Macklem Speaks during a year-end fireside chat with the Business Council of British Columbia.
Good luck!
