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According to a report by Jinse Finance, Stuart Kaiser, Head of US Equity Derivatives Strategy at Citibank, stated that in recent weeks, the bank’s derivatives trading division has observed a significant increase in demand from asset management clients for products that short iShares indices or high-yield bond benchmarks. This may indicate that macro investors have formed a certain view on the market’s future direction, or it could suggest they are hedging against the rise in risk assets. The fact that people are hedging credit risk implies they believe a reasonable market correction is likely to occur within the next three months.

According to Jinse Finance, the US dollar edged lower but remained within a narrow trading range as investors awaited the release of the US Consumer Price Index inflation data on Tuesday. The dollar declined last week, mainly due to weak employment data and the temporary appointment of Milan as a Federal Reserve governor, which increased the likelihood of a rate cut. Tuesday’s data may reveal the early impact of US trade tariffs on inflation. Chris Weston of Pepperstone noted that the market is focused on the extent to which core goods inflation is affected by tariffs.