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Sep FOMC Minutes As Expected: Hawkish

US TSYS
Tsy futures firmer after the bell, upper half session range - not a big reaction to the largely expected, hawkish FOMC minutes (better to do too much than too little) release.
  • Fed officials agreed inflation remains far too high and interest rates must keep rising to more restrictive levels and stay there for a while, showing little hint of a near-term shift in the course of policy.
  • Earlier, MN Fed President Neel Kashkari speaks at town hall: downplays suggestion the Fed "not moving aggressively .. 75bp increments is very aggressive" after noting there "may be a housing downturn, but not necessarily a hard crash."
  • Meanwhile, Tsy futures paring gains after $32B 10Y note auction re-open (91282CFF3) tails yet again w/ 3.930% high yield vs. 3.915% WI; 2.34x bid-to-cover vs. last month's 2.37x.
  • Focus turns to CPI early Thursday: MoM (0.1%, 0.2%); YoY (8.3%, 8.1%).

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