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Flat Ahead Of Month-End / Gov't Funding Bill, / MNI Chicago PMI

US TSYS

Treasuries are trading fairly steady going into month-/quarter- end with modest bear flattening in the curve early Thursday, with equity futures edging higher and dollar flat. Plenty of Fed speakers, some data, and Congressional votes provide the focal points.

  • The 2-Yr yield is up 0.6bps at 0.2951%, 5-Yr is up 0.7bps at 0.9971%, 10-Yr is up 0.2bps at 1.5185%, and 30-Yr is down 0.1bps at 2.059%.
  • Dec 10-Yr futures (TY) up 4.5/32 at 131-19.5 (L: 131-14 / H: 131-23.5).
  • Much attention on Capitol Hill, with Congress widely expected to avoid a gov't shutdown at midnight tonight (Senate starts by voting on a bill this morning).
  • Also, Fed Chair Powell goes back to Congress alongside Treas Sec Yellen for the second time this week, before a House Panel at 1000ET. At the same time, NY's Williams speaks.
  • That's followed by Atlanta's Bostic at 1100ET, Philly's Harker at 1130ET, Chicago's Evans at 1230ET, St Louis' Bullard at 1305ET, and SF's Daly at 1430ET.
  • In data, 0830ET sees jobless claims and final reading of Q2 GDP, with MNI Chicago PMI at 0945ET.
  • Supply is $35B combined of 4-/8-week bill auctions at 1130ET.
  • NY Fed buys ~$2.025B of 1-7.5Y TIPS.

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