Upcoming Data Releases:
Eurozone inflation tends to come in below consensus. 15 rounds of voting over the course of 1 week is requires to elect the House Majority Speaker. Leak forces the announcement of 18,000 job cuts at Amazon. US jobs data comes in softer than previous releases, but all remain above consensus estimates. Unemployment rate drops to 3.5%.
2023 starts off with some cash inflows to risk assets. Bonds in particular get a good jump.
Energy continues to sell off but productive assets like metals and lumber are outperforming in commodities.
Bond rally driven by longer duration positioning, as short of the curve is still rising.
3mo – 10yr curve inversion is now at a 20 year lows.
HY spreads still contracting.