We expect a strong US consumer income data this week (rising at 0.5% MoM for Aug) on Friday along with core PCE rising by .18% MoM leading to a 2.7% YoY in core PCE. We also expect that the US consumer confidence data as well as S&P PMI for US might surprise on the upside. With 189 BN USD of dated UST supply in 2-7 years segment this week, we expect US bond yields to move higher by 5-7 bps across the curve. We are currently tracking Sep NFP at 250-300k strong number as per 12th Sep IJC nos. In Europe we might see weak PMIs as well as weak IFO survey for Germany. We expect SNB to cut by 50 bps this week citing lower inflation as well as CHF appreciation issues. RBA likely to remain on status quo with a neutral guidance & Australian CPI likely to edged lower along with Tokyo CPI in this week data.
