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Modest Rebound on German Inflation Figures

US TSYS
US Tsy futures trading firmer - near recent highs after German state CPI results (0.3% MoM vs. 0.4% est, slightly cooling more hawkish ECB policy rhetoric since Fri) lent to bounce off overnight lows. Fairly choppy overnight action amid additional German and Spanish inflation measures.
  • Tsys back near the middle of Monday's wide range, 30YY currently 3.1987% (-0.0412) vs. 3.1887% low while yield curves give back portion of Mon's steepening (2s10s -2.497 at -34.986). Light volumes on last day of Sep futures trade, Dec takes lead quarterly position Wednesday.
  • Stocks firmer (ESU2 +34.0 at 4065.25), Crude softer (WTI -1.91 at 95.10).
  • Pick up in US data ahead (prior, est): FHFA House Price Index MoM (1.4%, 0.8%); QoQ (4.6%, --) and S&P CoreLogic CS 20-City MoM SA (1.32%, 0.75%) at 0900ET; Conf. Board Consumer Confidence (95.7, 97.4 est) and JOLTS Job Openings (10.698M, 10.300M) at 1000ET.
  • Fed speakers ahead: Richmond Fed Barkin discusses eco-outlook at 0800ET, NY Fed Williams economic outlook at 1100ET. Incidentally, late Monday MN Fed Kashkari headlines ‘Happy’ to See the Market’s Reaction to Jackson Hole, Bbg: The Minneapolis Fed president sees the selloff as evidence that the market is taking the central bank’s inflation fight seriously.
  • Currently, 2-Yr yield is down 2bps at 3.4028%, 5-Yr is down 4.3bps at 3.2102%, 10-Yr is down 4.3bps at 3.0596%, and 30-Yr is down 4.3bps at 3.1971%.

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