Episode Details

Stephen Fitzsimmons, Institutional Portfolio Manager on the BlueBay U.S. Fixed Income team discusses how investors were largely disappointed with the recent CPI reading, what we’re looking for in some key economic data releases this week, and how it might affect our positioning. 

• CPI came in hotter than market participants hoped and this drove yields higher across the US Treasury curve.
• The shape of the yield curve indicates that markets expect an economic slowdown, which is not our imminent base-case.
• Economic data in the US is doing little to show signs of slowing.
• We continue to expect that rate cuts will likely be later and potentially fewer than others may be pricing in.