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What to Watch

US TSYS
  • Markets will be keeping a wary eye on First Republic Bank (FRC) headlines as evidenced by recent knee-jerk sell-off on stale headline regarding potential buyers of the beleaguered bank. Tsy futures have recovered appr half the initial move, front month 10Y futures at 115-20.5 (-5) vs. 115-13.5 low.
  • This morning's round of data all at 0830ET includes Advance Goods Trade Balance, Wholesale and Retail Inventories, Durable and Cap Goods Orders.
  • US Treasury supply: $24B 2Y FRN auction (91282CGY1) and $36B 17W bill auctions at 1130ET; $43B 5Y Note auction (91282CHA2) and $45B 17D bill CMB auction at 1300ET.
  • Markets watching for debt limit updates after House GOP members made changes to their $4.8 trillion debt-limit package. Punchbowl News points out changes "included an amendment softening a provision that repealed a host of biofuel tax credits" and "implementation of strict work requirements for social safety-net programs."
  • Equity earnings continue: stocks still expected to present quarterly earning before the open include: Blackstone Mortgage Trust, Spirit Airlines Inc, Norfolk Southern Corp and Amphenol Corp.

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