January 17, 2023 11:41 GMT
Bear Steepening With Earnings and Empire Ahead
- Cash Tsys have bear steepened from Friday’s after yesterday’s MLK day closure, with the front end unchanged but long end yields drifting 4-6bps higher in a continuation of Friday’s paring of gains seen after Thursday’s in-line CPI print. Moves are potentially buoyed by stronger than expected China data and German ZEW sentiment overnight although it’s not reflected in near-term Fed pricing.
- A lighter docket today ahead of tomorrow’s stacked session (plus the BoJ overnight) although equity earnings resume, including Goldman and Morgan Stanley before the NY open today.
- TYH3 edges slightly lower from yesterday’s thin session to trade 7 ticks lower from Friday’s close at 114-17+, with modestly below average volumes. The trend signal remains bullish with resistance at 115-15+ (Jan 13 high) and support at 113-26+ (20-day EMA).
- Data: Empire mfg Jan (0830ET)
- Fedspeak: NY Fed’s Williams (1500ET) welcoming remarks, no text
- Bill issuance: US Tsy $60B 13W, $48B 26W bill auction (1130ET)