What to Watch: Gilts Freefall; US PMIs; US Gov Shutdown Next Fri

Tsy yields inching off recent overnight highs: 2YY made new 15Y high of 4.2657% this morning, currently 4.2011% +.0788,

• Tsys and EGBs tracking Gilts amid heavy selling in short end to intermediates after fiscal event concluded by Chancellor Kwasi Kwarteng in the House of Commons marks the largest shift in the policy stance of the Conservative party in a generation. Bloomberg reports that the cost of the package will be GBP161bn over five years.
  
• Tsy and Eurodollar futures have rebounded off lows, yield curves little flatter after Thu's bear steepener (2s10s currently -2.157 at -43.211.)
• US data at 0945ET:
  • S&P Global US Manufacturing PMI (51.5, 51.0)
  • S&P Global US Services PMI (43.7, 45.5)
  • S&P Global US Composite PMI (44.6, 46.1)
• Fed speak returns after 10 day Blackout:
  • Fed Chairman Powell at Fed Listens event at 1400ET, opening remarks unlikely to move markets, but may make iterative remarks tied to Wed's presser.
• Meanwhile, one week to go before US gov shutdown, headline watching for developments on funding bill.