US Rates In Search Of Consensus As Fed Leans In

"There's no consensus on the inflation outlook, or prospect of one in sight," Bloomberg's Liz McCormick wrote, over the long holiday weekend in the US. Previously, that lack of consensus (and the extreme ambiguity that facilitated it) manifested in a near total abandonment of the US long-end as a proxy for longer run macro outcomes. In the face of an impossibly convoluted outlook, markets focused almost exclusively on the front-end, "as short-term monetary policy actions [became] the only facto