November 15, 2023 11:55 GMT
Consolidating Post CPI Rally Amidst Heavy Volumes, Data In Focus
- Cash Treasuries have seen two-way trade overnight but currently sit just 1-1.5bp cheaper across the curve, consolidating yesterday’s significant rally after softer than expected US CPI. Data remains firmly in focus today with a heavy slate including retail sales and PPI amongst others.
- 2s10s has seen an intraday steepening to -39bps (with Asia-Pac swap desks noting fast money steepener flow) but remains off yesterday’s post-CPI high of -36.5bps.
- TYZ3 at 108-22 trades at the low end of the day’s range off 108-20, on very solid volumes of nearly 500k after an active European session following softer than expected UK CPI. Support is seen at 107-00 (Nov 13 low) but the bull cycle is seen remaining in play with resistance at 108-31 (Nov 14 high).
- Data: Weekly MBA data (0700ET), Retail sales Oct (0830ET), PPI Oct (0830ET), Empire mfg Nov (0830ET) and Business inventories Sep (1000ET).
- Fedspeak: VC Supervision Barr (0930ET), Barkin (1530ET)
- Bill issuance: US Tsy $56B 17W Bill auction (912797JJ7) – 1130ET