The Day Ahead: AM Edition 2022-07-13

The markets digesting the CPI print

Bonds

There was an initial spike under 138^25, a negative, but quickly recovered. Bond traders are trying to figure out if the next hike is 100 or 75 bps. I don’t know, but I still think it likely the 30yr drift lower though might poke above 140^05 first. Bears begin to get traction if ZB drops back under 138^25.

Still favor lower

Crude Oil

It would look be…