Reaction to Thursday's PCE deflator (a tad better than expected, but still elevated for January) continued through to the close of last week, but saw some reversal as a theme for Monday. Our central view has not changed, in the sense that we view the totality of circumstances not yet lined up for a capitulation fall in market rates into a rate-cutting theme. Not only have recent inflation prints been a tad uppity, but the mood of the risk asset space remains risk-on. Monday was not risk-on per se, in fact it was risk-off. But it would take a more impressive moment of risk-off to take away from the wider risk-on ... (full story)