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What to Watch: Data Flash Flood Over Quickly, Fed Speak, UFO Watch?

US TSYS
Tsys trading mostly firmer (30Y Ultra still weaker), yield curves steeper w/ 2s through 10s outperforming, 2s10s curve +2.213 at -81.213, appr 10bp off Wed's new 40 year inverted low amid speculation of curve unwinds.
  • Decent volumes (TYH3>370k) ahead flood of data at 0830ET (prior, estimate):
    • Initial Jobless Claims (196k, 200k), Continuing Claims (1.688m, 1.695m)
    • PPI Final Demand MoM (-0.4% rev, 0.4%) YoY (6.2%, 5.4%); PPI Ex Food and Energy MoM (0.1%, 0.3%) YoY (5.5%, 4.9%); PPI Ex Food, Energy, Trade MoM (0.1%, 0.2%) YoY (4.6%, 4.0%)
    • Building Permits (1.337m rev, 1.350m), MoM (-1.0% rev, 1.0%); Housing Starts (1.382m, 1.355m); MoM (-1.4%, -2.0%)
    • NY Fed Services Business Activity (-21.4, -17.0); Philly Fed Business Outlook (-8.9, -7.5)
  • Fed speakers on tap:
    • Cleveland Fed Mester at Global Interdependence event at 0845ET
    • StL Fed Bullard eco-outlook, text, Q&A, 1330ET
    • Fed Gov Cook remarks at Brookings Inst, text, no Q&A, 1600ET
    • Cleveland Fed Mester eco- outlook, text, 1815ET
  • Rounding up week's Treasury auctions: $75B 4W, $60B 8W bill auctions at 1130ET, $9B 30Y TIPS auction (912810TP3) at 1300ET.
  • UFO watch: Reuters reports US President Biden to speak about high-altitude balloons, UFOs sometime today, scheduled time unclear.

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