Markets Go Quiet Ahead of Busy Week
Activity in the currency markets remains muted ahead of what could become a dangerous week for believers in the “soft landing” consensus. The dollar is inching higher against most of its major rivals, and ten-year Treasury yields are sitting near the 4.2 percent mark, recovering somewhat after losing altitude toward the end of last week. Data out on Thursday showed monthly core inflation accelerating in January, but this seemed mainly driven by idiosyncratic factors that are unlikely to repeat themselves. Social Security cost-of-living adjustments and a rise in stock market valuations helped lift personal incomes, but pay growth slowed. On...