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What to Watch: CPI, Treasury Supply, Geopol Headlines

US TSYS
  • Underlying futures trading soft, short end outperforming slightly, curves mixed (3M10Y -.332 at -119.594, 2Y10Y +1.144 at -73.267) in the lead up to this morning's CPI inflation data at 0830ET.
  • Consensus puts core CPI inflation at 0.2% M/M in August in what’s likely only a minor uptick from unrounded 0.16% M/M readings in both June and July. The main increase is seen coming from airfares after two particularly heavy declines, muddying implications for core PCE seeing as it leans on PPI airfares (to be released Thursday).
  • Real Average Hourly/Weekly Earnings also out at 0830 which wraps up data until this afternoon's Monthly Budget Statement at 1400ET.
  • US Treasury auctions has $50B 17W Bills at 1130ET, $20B 30Y Bond auction reopen (912810TT5) at 1300ET.
  • Headline watching: JAPAN: Kishida To Announce "Bold Economic Package" By End Of September following today's cabinet reshuffle.
  • SECURITY: Russia To Strengthen Cooperation With North Korea "On All Fronts"

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