Daily Points

Global bond markets shifted into a rally following lower-than-expected UK inflation data, while Bank Indonesia delivered a surprise 50bps rate hike. Markets now await FOMC minutes and Nvidia's earnings for further direction.

Key Takeaways

• 1.Global bond markets are rallying, led by UK gilts, after UK inflation (CPI) data came in lower than consensus expectations.
• 2.Bank Indonesia unexpectedly hiked its policy rate by 50bps to support rupiah stability, surprising markets.
• 3.The FOMC minutes are expected to reveal a minority preference for removing easing bias language; the author argues the Fed should remain patient despite recent yield volatility.

Table of Contents

• On Deck for Wednesday, May 20th
• KEY POINTS
• Gilts Rally Post CPI—BoE's Bailey on Tap
• German Producer Prices—Below Consensus, but Not Light
• Bank Indonesia Stuns
• FOMC Minutes—Stability Needed

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