Stock market indices are back on the rise ('risk-on') and this may be weighing on bonds... but it's not a certainty.
This Tuesday, stock market indices seemed to obey their own momentum, seemingly uncorrelated with any news item, starting with the most eagerly awaited figures... which disappointed, but Wall Street and the European stock markets smashed a cascade of new all-time records. which are disappointing, but Wall Street and European stock markets cascaded to new all-time highs.

One wonders, then, whether the slight decline in T-Bonds (yield up +4.5pts to 4.1530%) has anything to do with the February consumer price index (CPI) published at 1:30 p.m., which is - indeed - a disappointment.
CPI rose to 3.2% in February (annualized) and +0.4% sequentially (after a 0.3% rise in January vs. December)

Core inflation, the measure most closely watched by the Fed, rose to 3.8% (annualized) vs. 3.7% expected (and +0.4% monthly vs. 0.3% hoped for).

The downgrading of US T-Bonds had no impact on Italian BTPs (perfectly unchanged) and little effect on our Bunds and OATs, with +2 to +2.5pts, at 2.775% and 2.324% respectively: not very significant.



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