The Search for a Reason to Drop Rates.
The post-NFP defensiveness remains intact for bonds, and tomorrow's CPI data will decide whether bonds fully erase last week's gains or if yields can revisit the stronger levels. The KRE regional bank ETF shows zero healing, even as the broader stock market has fully erased all of the weakness, indicating a banking sector crisis. Banks will begin reporting earnings at the end of the week, which may bring a change in this paralysis.