Market movers today
Focus on central bank speeches with ECB's Coeure and Fed's Fisher, but most important will be Fed chair Yellen's testimony.
Bank of Canada will announce its rate decision. It is widely expected that BoC will keep its key policy rate at 1.0% but it will be interesting to hear its comments on the fairly sharp rise in inflation. Most of the rise in Canadian inflation reflects supply side factors. There might also be focus on comments regarding the recent strengthening of the Canadian dollar.
Germany is printing EUR4bn in Bunds (May-24) - at a new all-time-low yield of around 1.20%. The previous low was 1.28% on 17 April 2014. Euro area core yields have been pushed down by a combination of 1) very low inflation, 2) the design of the TLTRO and implied forward guidance that signals 'low for very long', 3) recent weakening in European data as reflected in the surprise index that has dropped to around 1Y low and 4) limited headwind from US rates where the pricing of the Fed still remains relatively soft.
Most interesting macroeconomic numbers will be US industrial production for June, MBA Mortgage Applications and the NAHB Housing Market Index.
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