Futures Slightly Stronger In Asia-Pac Dealings, Fed Goolsbee Sounded Dovish

TYZ3 is currently trading at 109-19, +0-02 from NY closing levels.

• In the Asia-Pac session, cash US tsy yields have commenced with minimal movement, maintaining a relatively unchanged stance compared to the previous day. This follows a bull-steepening triggered yesterday when Governor Waller leaned dovish, hinting at potential adjustments to interest rate cuts.
• Since the NY close, Chicago Fed President Goolsbee, a FOMC voter, has given an interview to NPR’s Marketplace. While he noted that goods and services inflation had moderated, he is watching house prices closely as he sees them as “key”.
• Generally, though he sounded more dovish as he believed that once it is clear inflation is returning to target, then policy doesn’t need to be as restrictive.
• Goolsbee warned that rates staying high for a prolonged period would be a “concern”.
• Today sees the second Q3 GDP release including core PCE before Fedspeak from Cleveland Fed’s Mester (’24 voter) on financial stability and the Fed’s Beige Book.