MLK DAY

Key events:       UK – Average Earnings Index +Bonus (Nov) UK – Claimant Count Change (Dec) Canada – Core CPI (MoM) (Dec) Since the US markets were closed yesterday due to Martin Luther King Day celebrations, European markets have pulled out modest gains, helped by a further weakening European natural gas prices, which fell to their lowest level in 16 months.

Key events:       US – Martin Luther King, Jr. Day UK – BoE Gov Bailey Speaks The recently released CPI is prompting investors to question the Fed's plans to raise the overnight rate above 5%. The market doesn't seem to care, and after this data coincides with the forecast, yields are falling across the curve. Thus, 2-year Treasury yields have fallen to their lowest level since October, with room to fall substantially.