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Weaker Ahead Of A Busy Schedule

US TSYS SUMMARY

Treasuries have traded weaker overnight Wednesday on average volumes, with multiple points of interest on the schedule including inflation data, 10Y supply, and FOMC members' commentary.

  • Curve a little steeper: 2-Yr yield is up 0.2bps at 0.2405%, 5-Yr is up 1.6bps at 0.8422%, 10-Yr is up 1.9bps at 1.3675%, and 30-Yr is up 1.1bps at 2.0094%. Sep 10-Yr futures (TY) down 6.5/32 at 133-11 (L: 133-09.5 / H: 133-17).
  • The focal point for the week comes at 0830ET with the release of July CPI data - expectations are for the headline and core readings to begin demonstrating that the surge in the past few months was indeed "transitory". We'll put out a preview including sell-side summaries shortly.
  • Also highlighting the calendar is the $41B 10Y Note auction at 1300ET (there's also $30B 119-day CMB sale at 1130ET). NY Fed buys ~$2.025B of 22.5-30Y Tsys.
  • KC Fed Pres George's appearance at the NABE conference at 1200ET is the Fed speaker highlight (first appearance since late May); we hear again from Atlanta's Bostic at 1030ET. Also potentially of note, NY Fed's Logan speaks on emergency lending at 0800ET.
  • US Jul budget statement out at 1400ET too. Senate passed the $3.5T budget resolution around 0400ET along party lines as expected, setting up at least a month of legislative wrangling.

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