A very interesting setup for markets in the coming weeks with the Fed’s favored PCE release followed by next week’s employment report. In general, a market pricing more in line with the Fed’s guidance of three potential rate cuts for 2024 and with a timeline further out in the year. The message from the central bank is clear: Caution. The risk of moving too soon greater than the latter. In general, the rate market continues to consolidate from the extremes of late 2023.

Get your updates each week with Gregory Faranello, CFA–Head of U.S. Rates at AmeriVet Securities.