22V Research founder Dennis DeBusschere and his clients say investors largely
expect Wednesday’s US September CPI print to lift market risk appetite. An
internal client survey found 44% anticipate a risk-on reaction, about one-third
expect a mixed or negligible response, and nearly half expect other markets
participants to interpret the data as supportive of risk sentiment. DeBusschere
says rising bond yields are naturally tightening financial conditions and
therefore reduce the need for the Fed to hike this month; he adds higher yields
should slow growth and could push bond-market volatility indices lower. Clients
describe CPI as tracking a "Fed-friendly smooth disinflation path."
