Light Pressure For Futures Early This Week Following Latest Timiraos Piece

Tsy futures come under some light pressure at the start of the week, after the weekend saw WSJ Fed whisperer Timiraos ran a story titled “cash-rich consumers could mean higher interest rates for longer.”

• Elsewhere, news that Russia has suspended the Ukrainian grain export deal indefinitely, owing to drone strikes against Russian naval vessels, has provided fresh inflationary worry.
• To recap, cash Tsys were 6-14bp cheaper come the bell on Friday, with the front end leading the way as the curve bear flattened.
• Pre-NY weakness was facilitated by much firmer than expected German regional inflation data, with firmer than expected Italian, French and national German CPI readings also noted throughout the day.
• Friday’s U.S. data suite saw personal spending data provide modest beats, alongside in line ECI & personal income readings and in line to slightly softer PCE readings. Elsewhere, pending home sales data was much softer than expected, while the major UoM survey inflation expectations in the final monthly reading were virtually unchanged vs. prelim. levels.
• A late block sale in TU futures (-10K) helped keep the pressure on ahead of the close.
• Chinese PMI data headlines the Asia-Pac docket on Monday, with Eurozone CPI headlining the European docket. Monday’s NY data slate includes the MNI Chicago PMI and Dallas Fed m’fing survey.