Morning 2-28

On the road to Nowhere Easily explains the markets overnight. Spoos 4 handle range, Euro 38 pips, oil 40 cents, Gold $4 and Bonds 14 ticks. Bunds a little more active with a range 52 ticks. Trump speech tonight has everyone and every machine sitting on their hands. All is not lost though as Month end and second look at Q4 GDP may provide some moments of activity. More Than one sources has said dollars need to be sold for months end purpose’s this could come to fruition at 10:00 A.M for London Fix and then 10:30 for European close. A couple fed speakers today may also cause some excitement as rate hike Probabilities for March hover at 48%.Feds Harker @ 2:00 Williams @ 2:30
Title of trumps speech tonight is “Renewal of the American Spirit”. Markets looking for specifics on healthcare, taxes and infrastructure spending. Also hoping trump sounds more optimistic compared to his inaugural speech and reaches out to all Americans. We have already seen some comments regarding his Budget which he will discuss tonight, Increase military spending cut wasteful Government programs to pay for it.
Very light European calendar overnight but French CPI was lower and Italian CPI was reported higher then Consensus. 10 year yields across Europe Higher with France +2Bps.

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