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Busy Session Features CPI, 30Y Supply, And FOMC Minutes

US TSYS

Treasuries are a little stronger in overnight Wednesday trading, ahead of what promises to be an active session with data, supply, and Fed communications all in focus.

  • Long end continues to strengthen ahead of 30Y supply today : 2-Yr yield is up 1bps at 0.348%, 5-Yr is down 0.2bps at 1.0695%, 10-Yr is down 1.4bps at 1.5629%, and 30-Yr is down 2.8bps at 2.0676%.
  • Stocks are higher (financial stock qtly earnings eyed) and the dollar weaker.
  • At 0830ET we get the September CPI report; headline M/M seen steady at 0.3%, core ticking up to 0.2% from 0.1%.
  • Supply includes $35B 119-day bills at 1130ET, with the main event being $24B 30Y Bond re-open at 1300ET.
  • Later, we get FOMC September minutes (1400ET) with any potential info on taper options keenly eyed, with Govs Brainard (1630ET) and Bowman (2000ET) also appearing.
  • NY Fed buys ~$6.025B of 4.5-7Y Tsys.

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