Monitoring of PPI publication (discussed with other baseline measures) discussed herehow did the markets react, in terms of Fed funds futures, to the ten-year rate?
Source: FMC accessed 06/12, 06/13/2024, 1:30 p.m. CT.
The federal funds trajectory implied by the futures contracts is even more depressed.
The ten-year yield has also fallen. In perspective:
Source: CommerceEconomyaccessed 06/13/2024, edited by the author.
We have constant reactions – with the exception of the PPI release – on the nominal value of the US dollar, as shown in the chart below (over the same period):
Source: CommerceEconomyaccessed 06/13/2024, edited by the author.
Of course, the value of the dollar against a basket of foreign currencies is affected by events and revisions in expectations abroad, as well as domestically.
