EU tokenization trials: indecision

plus, Ripple's stablecoin, and US CPI

“Freedom would be not to choose between black and white but to abjure such prescribed choices.” – Theodor Adorno ||

Hi everyone, I hope you’re all doing well! It feels like market madness is calming down as we approach the end of the year – I’m sure many of you also feel like you could use a breather!

Below, I briefly glance at the US CPI data, which came in line with expectations.

I also attempt to sketch out Ripple’s motives for launching a stablecoin.

And I update on EU tokenization trials – one wraps up, the other may finally be getting started.

IN THIS NEWSLETTER:

• An inflation yawn

• Ripple’s stablecoin

• EU tokenization trials: indecision

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WHAT I’M WATCHING:

An inflation yawn

The US CPI data for November came in bang in line with consensus expectations. The headline index year-on-year growth was 2.7%, a slight acceleration from October’s 2.6%. The core index increased by 3.3% year-on-year, the same pace as the previous month.

This seems to clinch the likelihood of another rate cut next week, despite the headline acceleration and the core stickiness. It also makes a pause in January even more likely.

The benchmark US 10-year yield almost always swings wildly when inflation data is released, even if there are no surprises, so the drop you see in the chart doesn’t mean much at this stage. The reaction over the next 24 hours is more relevant for an expectations read and for the economic outlook.