Market movers today
The main event today is the G7 meeting in Italy as well as the impact on inflation from the continued decline in the oil prices after the OPEC meeting.
There are only have a few data releases out of the US today, where the second round of US GDP numbers as well as the second estimated for PCE for Q1 are due to be published this afternoon.
Yesterday, European government bond yields fell on the back of the move in US Treasury yields on Wednesday after the release of the FOMC minutes. The minutes were seen to be dovish by the market. Given the comments from the FOMC, we have changed our call for three-four hikes to three hikes next year. There were also more signals on the reduction on the balance sheet (QT). Read more on our view on the Federal Reserve, rate hikes and QT in FOMC Minutes, Fed outlines QT principles and expects to hike soon , 24 May 2017.
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