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What to Watch: Debt Ceiling, Data, 2Y Note Sale, Corporate Bonds

US TSYS
Treasury futures trading weaker but off late overnight lows (TYM3 -8 at 113-07 vs. 113-04.5 low) on chunky volumes (TYM3>600k).
  • Ongoing focus on any debt ceiling developments, negotiations continue.
  • Data parsed out this morning, kicks off with Philly Fed Non-Mfg Activity at the bottom of the hour. S&P Global PMIs up next up at 0945ET; New Home sales and Richmond Fed Mfg Index at 1000ET.
  • Fed speak: MN Fed Kashkari made unscheduled comments a few minutes ago, stating rates may need to hike again "if inflation stays high". Dallas Fed Logan makes welcome remarks at a tech conference at 0900ET. Meanwhile, Fed Chairman Powell to speak at New Democrat Coalition lunch at approximately 1230ET. If similar to the March lunch with the Republican Study Committee, participants could tweet discussion points.
  • Treasury auction: US Treasury $42B 2Y Note (91282CHD6) at 1300ET.
  • Eye on corporate bond issuance: John Deere filed prospectus to issue $36B in medium-term notes, details over timing and individual size TBA. If JD does issue $36B at one offering, would be new fourth largest on record, $5B larger than last week's 8-tranche jumbo issued by Pfizer.

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