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PCE And ISM Manufacturing Take Focus

US TSYS

The Treasury curve is fairly flat, having retraced both a jump higher in Asia-Pac trade (as equities fell sharply), and a drop to session lows in the European morning.

  • Stock futures now off worst levels (though still down), and dollar near session lows.
  • The 2-Yr yield is up 0.4bps at 0.2796%, 5-Yr is up 0.2bps at 0.9666%, 10-Yr is up 0bps at 1.4875%, and 30-Yr is up 0.1bps at 2.0456%.
  • Dec 10-Yr futures (TY) up 9.5/32 at 131-29 (L: 131-24 / H: 132-00.5), strong volume (~480k).
  • Data includes personal income/spending and PCE prices at 0830ET, with ISM manufacturing alongside construction spending at 1000ET
  • In between, we get finals for manufacturing PMI at 0945ET and UMichigan Sentiment at 1000ET.
  • Philly Fed's Harker speaks at 1100ET, Cleveland's Mester at 1300ET.
  • With gov't shutdown postponed for now, attention turns toward a potential infrastructure bill today.
  • No supply. NY Fed buys ~$8.425B of 2.25-4.5Y Tsys.

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