Emerging Market Bond Yields Are Sending a Worrying Signal bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
It will be a busy week filled with a wide range of economic releases, with the focus falling on the consumer and the Fed’s preferred inflation gauge. August personal income is expected to rise given the strong labor market while spending cooled given the end of summer vacations. The bond market will pay extremely close attention to the next round of inflation readings. Headline PCE will likely heat up given the surge in energy prices, while the core reading should maintain the 0.2% monthly pace.
US It will be a busy week filled with a wide range of economic releases, with the focus falling on the consumer and the Fed’s preferred inflation gauge.
The main event of the week will be the September FOMC meeting. Powell and Co. are expected to keep rates steady but may still signal one more rate increase is coming. Too many upside surprises with service/jobs/consumer readings will keep the Fed upbeat on the economy, forcing them to revise up their GDP forecasts and to price in one more rate hike.