The FX Files – Higher-for-Longer

The UST curve flattened sharply with 2Y yields, and 10y yields increasing 25bps, and 18bps, respectively, in reaction to the higher than expected US CPI print on Wednesday. The market pared 2024 rate cut expectations by around 25bps and it is currently pricing -41bps (less than two cuts) for the remainder of the year.

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