Spain 12-Month Letras Auction improves to 1.235% from 1.363%

The US Consumer Price Index will be attract attention, with falling gasoline prices being an important driver, partially offsetting the upward pressures from higher natural gas and food prices. “We expect headline CPI to rise by +0.1%/mth, following the chunky +0.7% rise the month before. On an annual basis, favorable base effects lower the rate from 2.0% to 1.7%/yr (mkt 1.6%)”, wrote analyst Annette Beacher, expecting also a relatively subdued Core CPI, at +0.2%/mth and 1.7%/yr (mkt 2.0%).