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US TSYS
  • While still off early overnight highs, Tsy futures have bounced off session lows over the last 90 minutes following positive comments by Atlanta Fed Bostic as he reaffirmed his view that the Fed's benchmark interest rate is high enough to get inflation under control without dragging the economy into recession.
  • Additional Fed speak later this afternoon, Fed Gov Waller, Monetary Policy Conference at 1300ET, MN Fed Kashkari Participates in Town Hall at 1500ET and SF Fed Daly Speaks At Chicago Council on Global Affairs at 1800ET.
  • Curves remain flatter as bonds outpace the short end, 3M10Y -13.560 at -84.951, 2Y 10Y -2.350 at -30.810. 10Y yield near session lows, 10YY 4.6447%. Dec'23 10Y futures near steady at 107-27, focus on initial resistance at 107-30+ (High Oct 9).
  • Incoming corporate bond and Treasury selling $46B 3Y notes generated moderate rate locks/pre-auction short sets in the first half. No substantive reaction to today's Wholesale Inventories/Trade Sales and NY Fed 1-Yr Inflation Expectations data, focus on Wednesday's September PPI.

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