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What to Watch: BOE Program Reacts, FOMC Minutes, 10Y Re-Open, Earnings

OUTLOOK

Tsys trading steady to mixed, curve steeper w/ Bonds weaker, near recent lows on decent volumes (TYZ2 >350k; 30YY>68k). Tsys continue to react to BOE Linker/Gilt purchase program headlines: had gapped higher early overnight following FT story, since refutes, the Bank may prolong the program - after Gov Bailey said late Tue the temporary intervention would end this Friday.

  • Tsys have since reversed gains after program extension story refuted, but inching off lows as BOE head economist Pill currently speaking on UK economy.
  • Otherwise: markets await Sep FOMC minutes release at 1400ET; Fed speakers:
    • MN Fed Kashkari town hall discussion at 1000ET
    • Fed VC Barr moderated Q&A on technology at 1345ET
    • Fed Gov Bowman on forward guidance, text and Q&A at 1830ET
  • Data on tap at 0830ET: PPI Final Demand MoM (-0.1%, 0.2%); YoY (8.7%, 8.4%); focus remains on Thu's CPI MoM (0.1%, 0.2%); YoY (8.3%, 8.1%)
  • Treasury auction today: $32B 10Y Note auction re-open (91282CFF3) at 1300ET
  • Q3 equity earnings kicks off: PepsiCo (PEP) beat: +1.97 vs 1.84 est; Walgreens Boots (WBA), Dominos (DPZ), Progressive (PGR), Delta (DAL) and Blackrock (BLK) early Wednesday.

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