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Data Eyed Ahead Of 20Y Supply And FOMC Minutes

US TSYS SUMMARY

Tsys have bounced from overnight lows with the curve flattening substantially from Tuesday's steepest levels.

  • Mar 10-Yr futures (TY) steady at at 135-25 (L: 135-17 / H: 135-28.5)
  • The 2-Yr yield is down 0.4bps at 0.115%, 5-Yr is down 1.3bps at 0.5609%, 10-Yr is down 2.2bps at 1.2922%, and 30-Yr is down 2.5bps at 2.0673%.
  • Safe havens are broadly in favor, with the dollar hitting best levels in more than a week, and stock futures a little lower.
  • A relatively busy data schedule today: 0830ET sees Jan advance retail sales and PPI data. Then at 0915ET, Jan industrial production, and at 1000ET, Dec business inventories.
  • In Fed speakers, Richmond's Barkin is up at 0900ET, with Boston Fed's Rosengren at 0915ET (today's previously scheduled event w Dallas's Kaplan was cancelled). These appearances come ahead of the Jan FOMC minutes, out at 1400ET.
  • Supply is $27B 20Y Bond auction at 1300ET. PNY Fed buys ~$1.225B of 7.5-30Y TIPS.

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