Overnight Gains Eliminated by PPI/Oil. Fed on Deck
The Producer Rate Index (PPI) was today’s just big ticket econ data and calling it “big ticket” is a little a stretch. PPI often passes without a trace, however can occasionally get an apparent action even if it’s not a huge response. Today’s installment is larger than typical. If there’s a reason, it would be that the PPI components that flow through to PCE (a more crucial inflation metric) are all raised (in some cases they run counter to the PPI headline). If there’s another factor, it’s because bonds aren’t just responding to PPI but likewise doing the exact same oil “follow oil prices” regimen. The Fed announcement and dot plot strikes at 2pm.
< img src="http://a.mbslive.net/assets/69baa50a9a4b8cc66cda8706/69baa50a9a4b8cc66cda8706.png" alt="20260318 open2.png"/ > < img src="http://a.mbslive.net/assets/69baa5059a4b8cc66cda8705/69baa5059a4b8cc66cda8705.png" alt="20260318 open.png"/ >