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Seeking A Catalyst Ahead Of Inflation Data


It's been a very rangebound overnight session, with Sep TYs trading within 3.5 ticks on limited volume (150k).

Dec 10-Yr futures (TY) down 1.5/32 at 139-12.5 (L: 139-11.5 / H: 139-15) A little steepening in the curve: the 2-Yr yield is up 0.2bps at 0.141%, 5-Yr is up 0.3bps at 0.2706%, 10-Yr is up 1bps at 0.687%, and 30-Yr is up 1.2bps at 1.431%.

Equities have been grinding higher vs Thursday's sharp losses. But no real news in either Asia-Pac or European trading to catalyze Tsy direction (plenty of ECB speakers but nothing really market-moving).

While Tsy supply is done for the week and the FOMC awaits, we still get the Aug CPI release at 0830ET (drop-off expected in both headline and core).

NY Fed buys ~1.75B in 20-30Y Tsys. They announce the next biweekly schedule of operational purchases on Monday.

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