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Data Eyed For Inflation Clues

US TSYS

US Rates broadly weaker with EGBs, curves bear steepening for a change (for the moment at least) as bonds currently extending overnight lows (30YY tapped 2.0231%) amid robust volumes (TYZ1>490k, USZ1>125k). Equities in the red (ESZ1 -25.0 at 4562.5), Gold -2.85, WTI crude up slightly.

  • Carry-over widening in sovereign spds on the back of Thu's ECB policy annc (mkt underwhelmed w/ECB Lagarde presser: "not for her to say" if markets had got ahead of themselves; specs piling on rate hike bets targeting 3Q'22.
  • Currently Greece 10Y vs. Bunds +18.8, Italy +12.5, Portugal and Spain wider by single digits.
  • It's largely inflation-related data that will be eyed today: 0830ET sees the Q3 Employment Cost Index, as well as the Sept personal income / spending report, which includes the Fed's preferred PCE price gauge.
  • At 0945ET we get Oct MNI Chicago PMI, with the final Oct UMich Sentiment to wrap up the week in data.
  • No supply; NY Fed buys ~$1.425B in 10-22.5 Tsys.
  • The 2-Yr yield is up 2.6bps at 0.5148%, 5-Yr is up 3.1bps at 1.2155%, 10-Yr is up 2.8bps at 1.6084%, and 30-Yr is up 3.1bps at 2.0125%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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