Morgan Stanley Fixed-Global Macro Commentary August 13-109838403(1)

MUpdateGlobalMacroCommentary|NorthAmericaAugust13MorganStanley&Co.LLCAlexandraMaierStrategistAlexandra.Maier@morganstanley.com+1212761-0428ZoeKStraussStrategistZoe.Strauss@morganstanley.com+1212761-0407MorganStanley&Co.Internationalplc+LorenzoTestaStrategistLorenzo.Testa@morganstanley.com+44207677-0337MorganStanleyMUFGSecuritiesCo.,Ltd.+HiromuUezatoResearchAssociateHiromu.Uezato@morganstanleymufg.com+8136836-8431MorganStanleyAsiaLimited+GekTengKhooStrategistGek.Teng.Khoo@morganstanley.com+8523963-0303PPImisssupportsUSTrally;UKlabordataexhibitmixedsignals;BundsbrushofffallinGermanconsumersentiment;Fed'sBosticneeds"alittlemoredata"beforecuttingrates;weakChinacreditdata;toneshiftfromBSP'sRemolona;DXYat102.65(-0.5%);US10yat3.843%(-6.1bp).•SoftUSPPIdata,withweaknessinmedicalservicespushingdownPCEforecasts,supportarallyinUSTs;USTsmaintaintheirgainsintotheNYafternoon,endingthedaywiththecurvebull-steepening.•VolatileUKdataexhibitmixedsignalsonthelabormarketwithanexpectedslowinginwagegrowth,asurprisingfallintheunemploymentrate,andyetasurgeintheJulyclaimantcountrate;thefallinunemploymentdrivespriceactiononGBP,whichstrengthens0.2%againsttheEUR.•BundsbrushoffanunexpectedlysharpdropinGermanyZEWSurveyExpectations,butultimatelyrallyalongsideUSTsafterUSPPIdatareinforcethebeliefthattheFedwilllikelysoonstartcuttingrates.•A...