I tend to dismiss the employment cost index during the pandemic because much of the skews represent the short-term hiring/firing of low wage workers during the pandemic.
In any case, the numbers were a touch light today and perhaps the PCE inflation numbers weren’t as high as feared. Finally, we could be seeing quarter-end rebalancing.
In any case, US 2-year yields are quickly moving lower down to 1.178% from 1.23% earlier. That dip is reverberating through the risk and currency space. Nasdaq futures are now flat and the dollar is reversing some of its gains.