Multi Asset Strategy Daily

Mizuho analyzes the impact of the US CPI print and recent AI-stock volatility on global rates and equity markets. The strategist highlights a disconnect between UK rate pricing and fundamentals while noting strong demand for US duration.

Key Takeaways

• 1.Focus is on US January core CPI data, which may firm due to seasonality and new weights, but is unlikely to shift the Fed's path given strong payroll data.
• 2.Recent market volatility was driven by a 'meltdown in AI-stocks' and elevated valuations, triggering systematic selling and a risk-off shift in rates.
• 3.GBP rates appear mispriced relative to weak economic fundamentals, suggesting room for deeper rate cuts if upcoming data surprises to the downside.

Table of Contents

• USD
• EUR
• GBP
• JPY
• Important Information
• Disclaimer

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