Brainard Buzz Boosts Tsys Ahead Of PPI And 10Y Supply

Treasuries have gained overnight Tuesday, ahead of PPI data and 10Y supply.

• The 2-Yr yield is down 2.6bps at 0.4168%, 5-Yr is down 3.1bps at 1.0861%, 10-Yr is down 2.8bps at 1.4619%, and 30-Yr is down 2.6bps at 1.856%.
• Dec 10-Yr futures (TY) up 9/32 at 131-18.5 (L: 131-10.5 / H: 131-20)
• Tsys gained in Asia-Pac hours on a BBG sources piece that Pres Biden has interviewed Fed Gov Brainard for the Chair's position - she's up to ~33% probability vs 22% 24 hours ago on PredictIt. Implying she's seen as a more dovish alternative to Powell.
• $39B 10Y Note auction features at 1300ET.
• Another busy day for Fed speakers: St Louis' Bullard at 0750ET and 0900ET at a UBS event; Powell speaking at a diversity conference at 0900ET; SF's Daly speaking at the NABE Conference at 1135ET, and Minn's Kashkari in a town hall at 1330ET. That's it for scheduled Fed speakers until Friday.
• The October PPI report at 0830ET is the data focus. Earlier, NFIB small business optimism came in a little below expectations, decelerating to 98.2 in Oct (99.1 prior, 99.5 survey).