JPMorgan’s advice here is pretty practical: flatten long-end curve trading ahead of the CPI to avoid getting squeezed from both sides by the Wash Congressional debut and the inflation data.

Crypto界网 news: A JPMorgan strategists suggests that investors should close out a trade where the 10-year to 30-year U.S. Treasury yield curve is flattening before the U.S. CPI data is released and before Federal Reserve Chair Waller’s first testimony before Congress, to manage the event risk ahead. In a report, the strategist said that due to further escalation of geopolitical tensions and hawkish remarks by Fed officials, yields on short-term U.S. Treasuries rose by 6 basis points, while the yield curve flattening narrowed by 3 basis points. The report noted that Fed Governor Waller expressed concern that recent high inflation could become embedded in market inflation expectations. Waller said that if the upcoming CPI data continues to show that core inflation pressure remains strong, the Federal Reserve will need to consider tightening monetary policy soon.