LONG Way To 2% Inflation Target

Tsys mildly weaker after the bell, clawing off midday lows through the second half as equities ground lower (emini -72.0; DJIA -525.0, NDX -330.0 -- sources citing Canada headlines where perceived tax avoidance for tech giants would be pursued, not to mention ongoing concerns for global banks over $ laundering that shook bank shares early in week).

• Myriad Fed-speak, Chi Fed Pres Evans had opportunity to clarify Tue comment that rates could rise prior to 2% infl target reached -- suggests timeline to get to 2% could be 2026.
• Rate were under pressure much of session amid heavy pre-auction short-sets and rate locking with over $18B high-grade debt adding to Tue's >$20B issuance.
• Short lived bid after strong US Tsy $53B 5Y Note auction (91282CAM3) trades through w/ 0.275% (0.298% last month) vs. 0.285% WI; 2.52 bid/cover vs. 2.71 prior. Indirects drew 66.25% vs. 61.93% prior, directs 17.39% vs. 15.93% prior, dealers 20.68% vs. 17.82% prior.
• The 2-Yr yield is up 0.4bps at 0.1387%, 5-Yr is up 0.2bps at 0.2675%, 10-Yr is up 0.3bps at 0.6741%, and 30-Yr is down 0.2bps at 1.4213%