USD: Attention turns to Beige Book – TD Securities

US Markets React to Softer PPI and Monitor Fed Developments

Strategists at TD Securities highlight a significant surge in US bond yields and a positive shift in stock markets, with the S&P 500 approaching its highest levels following weaker-than-expected producer price index (PPI) figures. Their projection for March's core PCE inflation stands at a modest 0.26% on a monthly basis.

With major economic releases limited, attention turns to TIC data, speeches from Federal Reserve officials Barr and Bowman, and the upcoming Beige Book. Meanwhile, investors are closely following developments in the Middle East for any potential market impact.

Key Events and Market Sentiment

• US rates experienced a notable rally on Tuesday, accompanied by a strong performance in equities that brought the S&P 500 within reach of record territory.
• The latest PPI report came in softer than anticipated, supporting a moderate outlook for core PCE inflation in March.
• The Senate Banking Committee has scheduled Kevin Warsh's nomination hearing for April 21 at 10:00am EDT（UTC+8）.
• Upcoming remarks from Fed officials Barr and Bowman, as well as the release of the Beige Book, are in focus for market participants.
• Geopolitical tensions in the Middle East remain a key concern, with investors watching for any significant updates as ceasefire discussions continue.
• On Wednesday, with few major data releases, TIC flows will be closely watched for insights into foreign investment in US Treasuries during February.

(This report was generated with the assistance of artificial intelligence and subsequently reviewed by an editor.)