Service Sector Inflation Pressuring T-Notes
Price pressures in the service sector are negative for T-notes.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"T-notes are slightly lower today after US Mar CPI rose +3.3% y/y, the biggest increase in two years, a hawkish factor for Fed policy. Also, strength in stocks today has reduced safe-haven demand for T-notes."
"Rising price pressures in the US service sector are bearish for T-note prices, after the Mar ISM services prices paid sub-index rose more than expected to a 3.5-year high."
"Thursday’s +9% rally in oil prices raised inflation expectations and undercut T-note prices. Also, concerns that the cost of the ongoing war against Iran will boost the US budget deficit are bearish for T-notes."
"Mar T-notes are under pressure today amid year-end liquidation by bond funds."
"Also, today’s rally in WTI crude oil to a 1-week high has boosted inflation expectations, a bearish factor for T-notes."
"However, price pressures in the service sector accelerated after the Oct ISM services prices paid sub-index unexpectedly rose +0.6 to a 3-year high."