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 market 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

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 market 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."