Recent very disappointing employment reports have provided the “stag-” in stagflation. This week, we’ll see whether PPI and CPI prints provide the “-flation” part.  While a rate cut next week could certainly goose the markets, would it induce employers to turn on the hiring spigot?

Futures are up modestly ahead of the open.

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OPEC+ hiked production targets for October over the weekend. But, the hike was modest compared to past hikes and is seen as a flexible target. It enables the 10Y yield decline to continue and the 2s10s to remain around 60 bps.

continuing…