Renewed inflation concerns sparked by comments from European Central Bank Executive Board member Schnabel and French PPI initially caused the US Treasury curve to steepen overnight. However, Treasuries have rallied back and pared losses ahead of the open. While the effects of the omicron variant remain uncertain, the UK Health Security Agency (equivalent to the US Center for Disease control) reported the new strain causes milder symptoms compared to delta. In addition, the FDA is expected to authorize a pair of covid treatments from both Pfizer and Merck as soon as the end of the week.
Chris Eckhoff
Associate, Investment Management Group
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