Futures A Little Softer, Cash Closed

TY futures show -0-07 at 112-12, 0-01+ off the base of a narrow 0-08 range, on subdued volume of ~100K.

• A reminder that cash markets are closed due to the observance of the MLK holiday, while CME futures will close early today (18:00 London/13:00 NY/12:00 Chicago).
• Spill over from European trade, as participants assessed weekend ECB-speak, applied some weight to Tsy futures through the old Bund futures open.
• Also note that late Friday/weekend Fedspeak wasn’t particularly supportive for Tsys.
• The usually dovish Chicago Fed President Goolsbee stressed the need to focus on data, along with suggesting that markets were a little “mixed up” after the Dec FOMC (he noted that the market may have put the cart before the horse re: rate cuts)
• Elsewhere, Atlanta Fed President Bostic told the FT that “inflation could “see-saw” if policymakers cut rates too soon.“ He also warned that the move towards the Bank’s 2% inflation target is likely to slow in the months ahead.
• On QT matters Bostic noted that “today we haven’t really seen any movements in money markets that suggests we’re close to a scenario where we don’t have ample reserves any more. Clearly at some point, there’s going to be a signal that we’re going to get closer to that threshold, and we’re going to have to do some thinking.”