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What to Watch: Ballot Counts, Fed Speak, 10Y Note Sale

US TSYS

Tsys steady to mixed, inside relatively narrow overnight range with 30Y seeing some moderate selling ahead the NY open. Moderate volumes (TYZ2<350k) as markets await more definitive results from US midterm elections, no clear leader for control of Congress as yet.

  • NY Fed Williams from Zurich overnight noted that inflation is clearly too high and the path of it uncertain, but that longer run inflation expectations are “remarkably stable”.
  • Additional Fed speakers: Richmond Fed Barkin economic outlook at 1100ET, MN Fed Kashkari on inflation, economy later this evening at 2000ET.
  • US Data remains limited: Wholesale Inventories MoM (0.8% prior, 0.8% est), Wholesale Trade Sales MoM (0.1%, 0.5%) at 1000ET. Main focus on CPI Thursday: (0.4%, 0.6%); YoY (8.2%, 7.9%).
  • US Tsy auctions $35B 10Y Notes (912810TL2) at 1300ET.

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