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At Prometheus, we are committed to equipping our clients with the most granular, high-frequency, and actionable understanding of macro conditions in the industry. We offer our clients a range of research solutions, from big-picture macro themes to actionable trading signals. In the spirit of giving back to the community, we are excited to offer an All-Access week in our Institutional Services. Each day this week, we will unveil one product offering from our extensive Institutional Offering. If you’re interested in institutional access, please contact us at [email protected].

The Observatory: Full Note

Today, we share a note from The Observatory. The Observatory is how we at Prometheus monitor the evolution of the economy and financial markets in real-time. The insights provided here are slivers of our research process that are integrated algorithmically into our systems to create rules-based portfolios.


Our primary takeaways are as follows:

  • The latest CPI data points to inflationary pressures largely inconsistent with the Fed’s achieving dynamics consistent with its 2% objective.

  • Services prices remain well-supported, while goods prices will likely face some pressures. We see the net impact of these forces as an inflation rate that stays modestly above the Feds target.

  • Relative to these expectations, treasury markets are pricing outcomes consistent with a recession, resulting in a return to the Fed’s 2% inflation objective. At the same time, term premia remain depressed relative to government asset supply.

  • Our Alpha Strategies favor exposure consistent with a steepening of the yield curve. At the same time,  we also find a modest signal to be short bonds. Bond beta remains unattractive for asset allocators.

You can read all the data and analysis driving this assessment in the link below. Until tomorrow.


The Observatory: Full Note


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