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Market Roundup: Midday Misinterpretation

US TSYS

Bonds had started to bounce off recent lows following misinterpreted BBG headline:
BIDEN HAS ENDORSED FED'S POLICY PIVOT: BERNSTEIN (Jared Berstein, sits on the White House Council of Economic Advisers) - spurred confusion until Bbg ran correction: BIDEN ENDORSED FED PIVOT TO TIGHTEN THIS YR, Bbg. Tsys receded again despite the continued use of "PIVOT" in the statement.

  • Tsys currently mixed after a strong start and ongoing debate over step-down to a 50bp hike in December as data cools. Little new in WSJ's Fed watcher Timiraos article overnight.
  • Support evaporates after midmorning JOLTS data (job openings rise unexpectedly to 10.717M vs. 9.75M est (above prior 10.053M) showed labor market remains tight - dampening speculation over step-down to 50bp hike at Dec FOMC.
  • Lack of strong convictions over forward policy evident in market swings ahead Wednesday's FOMC at 1400ET and Chair Powell's presser at 1430ET. Friday sees latest employment data for October.

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