WS #15383
The Redbook retail sales index rose 8.3% YoY, signaling resilient consumer demand, while the trade deficit widened sharply to $105.6B. Despite the equity rally, bond markets are pricing in a hawkish Fed, with the 10-year yield at 5.31% and credit spreads at the 85th percentile. This divergence suggests the market is currently prioritizing AI growth over macro inflation risks.
Macro Data & Rates
The Redbook retail sales index rose 8.3% YoY, signaling resilient consumer demand, while the trade deficit widened sharply to $105.6B. Despite the equity rally, bond markets are pricing in a hawkish Fed, with the 10-year yield at 5.31% and credit spreads at the 85th percentile. This divergence suggests the market is currently prioritizing AI growth over macro inflation risks.