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What to Watch

US TSYS
  • Precursor to Wed's FOMC policy annc, soft China PMI early overnight helped prime Tsys as they broke higher after the BOJ left policy unchanged at -0.1%, left upper limit of YCC framework at 1%.
  • Meanwhile, soft Eurozone CPI and GDP growth helping Tsys extend highs heading into the NY open, curves bull flattening (3M10Y -11.231 at -68.141, 2Y10Y -5.135 at -21.324) at the moment.
  • Pick-up in economic data: Employment Cost Index at 0830ET followed by house price data at 0900.
  • MNI Chicago PMI released at 0945ET followed by Conf. Board Consumer Confidence at 1000ET. Regional Dallas Fed Services Activity wraps things up at 1030ET.
  • US Tsy supply: $44B 52W, $75B 42D CMB Bill auctions. Reminder final refunding announcement tomorrow at 0830ET.

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