'Cooler-than-expected' PPI (along with lower inflation expectations from NYFRB's survey) trumped 'hotter-than-expected' CPI this week and opened the floodgates for traders to bet on The Fed being dovish-er than they expect to be in 2024. {chart} Will The Fed comply? The odds of a cut in March have soared above 80% (despite all the FedSpeak jawboning away from that)... {chart} Expectations for 2024 rate-cuts exploded to new highs at 170bps (now fully pricing in 6 cuts and a 65% odds of a 7th cut)... {chart} And as rate-cut expectations soar, so the spread between 2Y yields and current Fed Funds nears record highs... ... (full story)