January 30, 2023 20:46 GMT
Tsys Hold Narrow/Weaker Range Ahead Wed's FOMC
Tsys hold weaker, inside session range at midday, relative quiet start to a FOMC week. Higher than expected Spanish CPI/HICP inflation triggered selling across the board overnight, while Tsys see-sawed inside range with no substantive data to react to.
- Tsy 30YY currently 3.6545% (+.0355), yield curves flatter: 2s10s -0.915 at -70.091, 5s10s -2.337 at -13.184. Decent volumes (TYH3 >1M) with Asia back from Lunar New Year holidays.
- Fed funds implied hike for Feb'23 steady at 26.3bp ahead Wed's FOMC annc, Mar'23 cumulative 46.9bp to 4.798%, May'23 58.5bp to 4.914%, terminal at climbs to 4.925% in Jun'23.
- Additional policy/event risk with the BOE and ECB announcing this Thu. Participants plying the sidelines ahead Fri's Jan employment data (175k est vs. 223k prior).
- Eearnings annc pick up in earnest early Tue w/: International Paper (IP), Pfizer (PFE), Philips 66 (PSX), Pulte Grp (PHM), McDonalds (MCD), Marathon Petroleum (MPC), Corning (GLW), Sysco (SYY), UPS, GM, Caterpillar (CAT), Exxon (XOM).