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Regional German CPIs Weigh, Important Docket Ahead

US TSYS
  • Cash Tsy yields sit 3-5bp higher on the day and with only the very long end lagging the move, buoyed by regional German CPI readings posing upside risk to the national core print later today.
  • TYM4 at 110-03 (-08) has lifted off the day’s lows of 110-01 with elevated volumes of 385k. The trend needle points south with support at 109-25+ (Feb 23 low).
  • There’s a heavy docket today, with data including PCE inflation for January, continuing jobless claims for a payrolls reference period for next week’s report and manufacturing surveys including the MNI Chicago PMI after every main mfg survey for February has surprised higher.
  • Data: PCE/Incomes Jan (0830ET), Weekly jobless claims (0830ET), MNI Chicago PMI Feb (0945ET), Pending home sales Jan (1000ET), KC Fed mfg Feb (1100ET)
  • Fedspeak: Bostic fireside chat (1050ET), Goolsbee on mon pol (1100ET), Mester on financial stability (1315ET), Mester on Yahoo Finance (1530ET), Williams in moderated discussion (2010ET).
  • Bill issuance: US Tsy $95B 4W, $90B 8W bill auctions (1130ET)

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