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Investors Prepare For PPI Inflation

FED

NY Fed Operational Purchases

US EURODLR OPTIONS

BLOCK, Long Green Dec'23 Put Spd

US TSYS/SUPPLY
DATE TIME AMOUNT SECURITY CUSIP, HIGH YLD
27-Aug 1130ET $30B 4W-Bill (9127964A4), 0.080%
27-Aug 1130ET $35B 8W-Bill (9127964K2), 0.090%
27-Aug 1300ET $47B 7Y-Note (91282CAH4)

July's 7Y auction drew high yld of 0.446% (0.511% in June) rich vs. current 0.522% WI.

BMO strategists suspect carry-over support for today's 7Y auction after strong demand for record 2- and 5Y auctions this wk. "The addition of a large month-end index extension" of 0.15Y "should also bolster demand." BMO said they're "cognizant this morning's monetary policy shift limits the set up to accommodate today's auction, but nonetheless expect a good result."
Cantor Fitzgerald also cite the large month-end extension, adding "the past two 7 year auctions have been very strong both stopping short by 0.7bps."
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com
MNI Chicago Bureau | +1 312-431-0089 | bill.sokolis@marketnews.com