May 26, 2022 11:25 GMT
What to Watch: Fed Speak, GDP, PCE, Pending Home Sales, 7Y Sale
MARKET INSIGHT
Rates trading mixed ahead the opening bell, 2s-10s outpacing mildly weaker Bonds, 10s off highs (10YY fell to 2.7023% low), as yield curves resume bull steepening
(2s10s +2.771 at 27.491; 5s10s off inversion at 3.967 +1.697).
- Carry-over support for stocks (ESM2 +27.25 at 4,004.0) after minutes showed no discussion of larger rate hikes. Not much gleaned from minutes that hasn't already been said, perhaps today's Fed speakers will provide some insight:
- Fed Gov Brainard on digital assets w/ House panel at 1200ET
- SF Fed Daly on CNBC's The Exchange at 1300ET
- Economic data kicks off at 0830ET:
- Weekly Claims (218k, 215k); Continuing Claims (1.317M, 1.310M)
- GDP Price Index (8.0%, 8.0%); Annualized QoQ (-1.4%, -1.3%)
- Personal Consumption (2.7%, 2.8%)
- Core PCE QoQ (5.2%, 5.2%), followed by
- Pending Home Sales MoM (-1.2%, -2.0%); YoY (-8.9%, -8.0%) 1000ET
- Kansas City Fed Manf. Activity (25, 18) at 1100ET
- Tsy auctions:
- US Tsy $35B 4W and $30B 8W bills at 1130ET
- US Tsy $42B 7Y note auction (91282CES6) at 1300ET
- Geopol risk: BBC: No EU Ambassadors Meeting Tomorrow On Oil Embargo: Jessica Parker at BBC News tweets: "Hearing EU ambassadors won't meet tomorrow as had been mooted. So it's all down to Sunday's coreper discussion ahead of EUCO. Oil embargo unresolved & some diplomats questioning whether this extraordinary European Council was really a good idea"
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