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Flat Ahead Of Heavy Fed Speaker Slate, 7-Yr Supply

US TSYS SUMMARY
  • A very limited range for Tsys so far, ahead of a heavy slate of Fed speakers, jobless claims, and 7-Yr supply. Front TYs trading within 4.5 ticks in the overnight session (139-15 to 139-19+), last up 1 at 139-17.
  • Some very modest curve flattening: 2-Yr yield is down 0.2bps at 0.1367%, 5-Yr is up 0.3bps at 0.2736%, 10-Yr is down 0.2bps at 0.6708%, and 30-Yr is down 0.6bps at 1.411%.
  • We start with Dallas Fed's Kaplan at 0850ET; Chair Powell (alongside Sec Mnuchin) before the Senate Banking Committee at 1000ET, then StL's Bullard at 1200ET.
  • 1300ET sees Chicago's Evans and Richmond's Barkin (separate events), then at 1400ET, NY's Williams, Atl's Bostic, and again, Barkin.
  • Jobless claims at 0830ET and Aug new home sales at 1000ET, with Sep KC Fed manufacturing index at 1100ET.
  • In supply, $65B in 4-/8-week bills sold at 1130ET, with $50B in 7-Yr Notes sold at 1300ET. NY Fed buys ~$1.75B of 20-30-Yrs.

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