Lock or Float 1/13/25

Quiet Start to the Week as Bonds Stay Defensive Ahead of Key Inflation Data.

Following Friday's jobs report, the expectation for a Fed rate cut has significantly diminished. While there was a noticeable shift in both long and short-term rates, it remains a small move compared to the broader trend since early October. Over this period, the labor market has proven stronger than anticipated, and inflation has not shown the improvement many hoped for. Last week’s jobs report added to this sentiment. Looking ahead, this week’s focus shifts to the PPI and CPI data, with CPI taking center stage as the more significant release. While Monday is light on data, markets are starting the day with a slightly weaker tone. LOCK until we have data that tells us otherwise.