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What to Watch: Trade Balance, Markit PMIs, Fed Speak

MARKET INSIGHT

Rates trading weaker/near recent lows, curves continue to inch off deeper inverted levels (2s10s at -0.369, +2.736; 5s30s at -14.587 +1.081) with short end outperforming.

  • Limited FI react to geopolitical headline risk re: Russia War in Ukraine. Latest on sanctions front, Bbg reports Germany considering ending coal imports from Russia.
  • Data roundup for today:
    • Trade Balance (-$89.7B, -$88.5B) at 0830ET
    • S&P Global US Services PMI (58.9, 58.9); Comp PMI (58.5, 58.5) at 0945ET
    • ISM Services Index (56.5, 58.5) at 1000ET
  • Fed Speakers:
    • Fed Gov Brainard virtual forum on inflation, text, Q&A at 1005ET
    • SF Fed Daly on US economy, text, Q&A TBA at 1230ET
    • NY Fed Williams virtual discussion on health & economy at 1400ET
  • Politics on tap
    • House Minority Whip Steve Scalise, Republican Conference Chair Elise Stefanik and Reps. Richard Hudson (N.C.) and Lauren Boebert (Colo.) hold news conference at 1045ET (Punchbowl)
    • Pres Biden, Harris and former President Barack Obama will speak about the Affordable Care Act in the Rose Garden (Punchbowl)

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