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What to Watch: Consumer Confidence, 2Y Sale, Equity Earnings

US TSYS

Continued/carry-over short-end bid from Friday amid speculation of two consecutive 75bp hikes by year end -- w/ push back against 75bp hike in Dec. Long end support gaining, yield curves bull flattening (2s10s -6.417 at -33.071).

  • Weaker housing data so far:
    • FHFA House Price Index MoM weaker than exp at -0.7% vs. -0.6% est
    • S&P CoreLogic CS 20-City MoM SA -1.32% vs. -0.80% est; YoY 13.08% vs. 14.0% est.
  • Up at 1000ET: Conf. Board Consumer Confidence (108.0, 106.0); Present Situation (149.6, --); Expectations (80.3, --); Richmond Fed Mfg Index (0, -5)
  • US Tsy auction at 1300ET $42B 2Y note auction (91282CFQ9)
  • Fed in self-imposed media Blackout in regards to policy - while Fed Gov Waller expected to speak on FedNow at Vegas conference at 1355ET, moderated Q&A.
  • Q3 equity earnings continue after the close: Chipotle (CMG) $9.233 est; Google $1.248 est; Microsoft (MSFT) $2.308 est; Texas Instruments (TXN) $2.382 est; Visa (V) $1.863 est; NCR Corp (NCR) $0.775 est; Mattel (MAT) $0.735 est

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