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US FI Kicks Off May Weaker

US TSYS
US FI futures trading weaker on light volume (TYZ2<190k) Monday, no follow through with Europe and Asia closed for spring holidays. Yield curves mildly flatter/off lows (2s10s -.346 at 20.938, 5s30s -.664 at -3.143). US$ rebounds after paring climb to 5Y highs last Friday (DXY +.423 at 103.382).
  • Midmorning economic data on tap:
    • S&P Global US Manufacturing PMI (59.7, 59.7) at 0945ET followed by:
    • Construction Spending MoM (0.5%, 0.8%) at 1000ET
    • ISM Manufacturing (57.1, 57.6), Prices Paid (87.1, 87.4), New Orders (53.8, 54.1)
    • Main focus on Wed's FOMC, 50bp hike anticipated, more to follow
  • Treasury supply resumes: $45B 13W, $42B 26W bill auctions at 1130ET
  • Stocks firmer (ESM2 +19.0 at 4146.5), earnings cycle resumes with handful announcing ahead the NY open, lion's share after the close: Expedia (EXPE), Williams Cos (WMB), Devon Energy (DVN), Diamondback Energy (FANG).
  • Geopol risk:Market remains alert for developments on Russia war in Ukraine, knock-on effect to markets.
  • Cross-Asset: Crude weaker (WTI -3.35 at 101.34) as China covid curbs choke demand. Gold broadly weaker -16.49 at

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