The better than expected US CPI data has sent stocks higher and yields lower. The US dollar is pushing lower but rebounding in volatile trading.

A snapshot of the major stock indices currently shows that the futures are implying:

  • Dow +430 points
  • S&P index +66 points
  • NASDAQ index +305 points

in the US debt market:

  • 2 year yield 3.940%, unchanged
  • 5 year yield 4.026%, -1.6 basis points
  • 10 year yield 4.285%, -0.3 basis points

Markets are pricing and 76 basis points of cuts between now and the year end. Up from 70 basis points before the release.

Source: Forex Live