georgeclerk
Major market averages moved down on Tuesday along with yields, as investors placed their bets ahead of the key inflation data expected tomorrow.
Early on and the Nasdaq Composite (COMP:IND) was -0.5%, the S&P 500 (SP500) was -0.6%, and the Dow (DJI) was -0.7%.
The 10-year Treasury yield (US10Y) fell 5 basis points to 4.37%. The 2-year yield (US2Y) fell 5 basis points to 4.74%.
See how other yields trade across the entire yield curve here.
Markets got the week off to a subdued start yesterday, with little in the way of fresh developments to drive any new moves, said Deutsche Bank’s Henry Allen.
“That should change later in the week, as we’ll get the US CPI report, the ECB’s policy decision, and the start of the Q1 earnings season. But for now, at least, the main theme has been the continuation of last week’s trends, including more and more doubts about rate cuts this year, and growing fears about inflation,” Allen added.
The consumer price index for March, which is set to be released tomorrow, is expected to show a 3.4% annual rise.
The NFIB Small Business Optimism Index data for March, which was reported at 6:00 am ET, came at 88.5, a little lower than the forecast of 88.8.
“We think small business confidence deteriorated further more broadly, as tighter credit conditions continued to bite,” said Pantheon Macroeconomics.
“Tuesday’s data will highlight one of the nagging issues for markets – and the Fed alike. While official data continues to signal strength, other survey data is already pointing to a noticeable softness,” said ING Economics.