Markets Roundup: Paring Gains, Tracking EGBs

Still firmer, support for Treasury futures has ebbed over the last hour - largely knock-on effect as EGB's pare gains ahead of the weekend. Moves not related to impending US Govt shutdown expected to start Sunday.

• Current Dec'23 10Y futures +8.5 at 108-04 vs. 107-26 low, well above initial technical support of 107-05+ 1.382 proj of the Jul 18 - Aug 4 - Aug 10 price swing. On the flipside, initial technical resistance holds at 108-17/109-03+ Low Sep 27 / 20-day EMA.
• Fast two-way trade reported after initial data came out largely in-line:
  • Wholesale Inventories MoM (-0.1% vs. -0.2% est)
  • Retail Inventories MoM (1.1% vs. 0.5% est)
  • Personal Income (0.4% vs. 0.4% est)
  • Personal Spending (0.4% vs. 0.5% est, prior up-revised to 0.09%)
  • Real Personal Spending (0.1% vs. 0.0% est)
  • PCE Deflator MoM (0.4% vs. 0.5% est), YoY (3.5% vs. 3.5% est)
  • PCE Core Deflator MoM (0.1% vs. 0.2% est), YoY (3.9% vs. 3.9% est)
  • Little observable reaction to lower than est. Chicago PMI (44.1 vs. 47.6 est, 48.7 prior) and after slightly higher UofM consumer sentiment at 68.1 vs. 67.7 est, 1- and 5Y inflation expectations in-line with expectations of 3.2% and 2.8% respectively.