Oil Prices Slide on Demand Worries; Walmart Plans More Price Cuts While Bond Rally Extends on Rate Cut Bets
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Oil prices slid almost 5% overnight amid concerns about oversupply and waning demand. The drop bodes well for further declines in global inflation.
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Walmart executives noted prices for goods like apparel fell 3-6% and it plans more cuts for the holidays, sparking worries about margins.
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The bond rally continued with 2-year Treasury yields down 21 bps this week. Markets have priced out Fed rate hikes and imply almost 1 percentage point of cuts next year.
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U.S. data has shown a pattern of strength mid-year before softening late in the year. If it holds, the bond rally may have further to run.
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Key events today Eurozone CPI data, appearances by ECB's Lagarde and other officials, U.S. housing starts and Fed speakers.