The Indian rupee climbed to a more than four-month high and forward premiums were at the highest since May on the back of bets that the U.S. Federal Reserve will cut rates rapidly this year..
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Bonds ended the previous week at the highest yields since before the December Fed announcement.  The story behind the that story is that yields were roughly unchanged from opening levels on Friday, despite high volume responses to the jobs report and ISM Services data.  The sideways grind speaks to the latest dose of uncertainty (and the fact that last week's data wasn't able to clear it up).  Now at the start of the new week, trading levels have improved, but not beyond the range seen on Friday.  If we could only focus on one calendar event with power to add clarity to present trends, it would be Thursday's CPI.  Between now and then, the Treasury auction cycle (Tue-Thu) may provide some context on the palatability of sub 4% 10yr yields.
In terms of recent trends, it can increasingly be argued that the downtrend seen in Nov/Dec is over and that a smaller countertrend (yellow lines) is intact