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Nascent Overnight Gains Fade With Focus On Inflation Data


Treasuries are a little stronger in overnight trade Thursday ahead of the September CPI report.

  • Yields are little changed (+0.2bp to -0.9bp) across the curve, with 10Y (TY) futures off session highs and trading within Wednesday's ranges. The 2-Yr yield is up 0.2bps at 4.9841%, 5-Yr is down 0.9bps at 4.5678%, 10-Yr is down 0.2bps at 4.5563%, and 30-Yr is up 0.8bps at 4.7026%.
  • Nascent gains in early European morning trade faded as oil prices and equities edged higher, with focus turning quickly to the latest inflation reading and jobless claims data.
  • Analysts expect core CPI to print 0.3% M/M in September for the 2nd month in a row, with headline likewise 0.3% M/M, a deceleration from the energy-led jump up to 0.6% in August.
  • Our full CPI preview is here.
  • Attention will then turn to supply, with $20B 30-Yr Bond reopen, and potential for an announced upsizing of 6-/13-/26-week bills in keeping with increases earlier this week.
  • Fed speakers include Dallas' Logan, Atlanta's Bostic, and Boston's Collins.

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