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Mild Bear Steepening Ahead Of PCE, Final U.Mich

US TSYS
  • Treasuries for the most part maintain yesterday’s post-data rally, ranging unchanged to 2.5bp cheaper across major benchmarks for a mild bear steepening on the day.
  • 2s10s at -18.5bp (+1bp) are off yesterday’s pre-data high of -13bps and last week’s -10.5bps which marked highs since July 2022.
  • TYZ3 at 106-08 (-03) trades at the high end of the day’s narrow range in consolidation of yesterday’s push to 106-13. Resistance is seen at 106-29 (20-day EMA). Volumes at 280k have eased back from particularly heavy overnight sessions seen this past week.
  • Data: Core PCE/personal incomes/spending, Sep (0830ET), U.Mich, Oct final (1000ET), Kansas City Fed services Oct (1100ET)
  • Fedspeak: VC Supervision Barr opening remarks at Fed payment conference – shouldn’t touch on mon pol in FOMC blackout (0900ET)

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