Curve Flattens On Wednesday

TYZ3 deals at 108-04, +0-06, in line with late NY levels.

• Cash tsys finished 1bp cheaper to 14bps richer across the major benchmarks, the curve twist flattened pivoting on 5s.
• The minutes of the September FOMC meeting facilitated a recovery from session lows, which showed a majority expect one more hike while some members see no more hikes required. Members noted the risks of overtightening now had to be balanced against keeping inflation on a downward path toward 2%.
• Earlier in the session there was little reaction to the latest round of US data, headline PPI was a touch firmer than forecast.
• The latest 10-Year Auction tailed, an average bid/cover ratio and indirect take up was observed.
• There is a thin docket in Asia today, further out the September CPI print headlines today and we also have the latest 30-Year Supply. Fedspeak from Logan, Bostic and Collins is due.