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What to Watch: ECB Policy Annc, Weekly Claims, 30Y Bond Sale

MARKET INSIGHT

Tsys trading mixed on lighter volumes (TYU2<280k), curves flatter (2s10s -1.841 at 22.709) w/short end under pressure. Focus on ECB rate annc at 0745ET (presser 45 minutes later) w/markets leaning toward 50bp hike.

  • Data on tap at 0830ET
    • Initial Jobless Claims (200k, 207k)
    • Continuing Claims (1.309M, 1.305M), followed by
    • Household Change in Net Worth ($5.297T, --) at 1200ET
    • Focus turns to Friday's May CPI w/ estimates more than twice the prior read at 0.7% vs. 0.3% for April.
  • No Fed speakers: Fed in blackout through June 16
  • US Tsys auctions:
    • US Tsy $35B 4W, $30B 8W bills at 1130ET
    • US Tsy $19B 30Y Bond auction reopen (912810TG3) at 1300ET
  • Cross-Asset: Stocks firmer, near recent highs (ESM2 +20.5 at 4136.5). Crude near steady (WTI at 122.11). Gold weaker at 1849.40 -4.96.
  • Politics: Select Committee to Investigate the January 6th Attack on the United States Capitol public hearings start tonight at 2000ET

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