MACRO VIEW: IRX HINTS NO SEPTEMBER RATE HIKE BY FED
IRX (13-week treasury bill index) failed to hold above relevant highs of 0.07% and reverted back to hear-zero levels.
Due to its correlation to Effective Fed Funds rate, IRX will serve as an expectations indicator of upcoming federal reserve rate hike
Most likely reason of the lack of expectations regarding the rate hike in September is another leg of downtrend in oil happening currently, which will again drive US inflation towards zero and away from the FED's 2% targat (one of 2 key conditions of the perspective rate hike)
Due to its correlation to Effective Fed Funds rate, IRX will serve as an expectations indicator of upcoming federal reserve rate hike
Most likely reason of the lack of expectations regarding the rate hike in September is another leg of downtrend in oil happening currently, which will again drive US inflation towards zero and away from the FED's 2% targat (one of 2 key conditions of the perspective rate hike)
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