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What to Watch: ECI, PCE, Likely Pop-Up Fed Speakers

US TSYS
  • Another flurry of early US data to round up the week, main focus on Employment Cost Index (1.1% est) and PCE with YoY est 3.0% vs. 3.8% prior, Core PCE 4.2% est vs. 4.6% prior at 0830ET.
  • UofM data follows at 1000ET, consumer sentiment steady at 72.6, 5-10Y inflation est 3.0% est vs3.1% prior. KC Fed Services activity wraps up the week at 1100ET.
  • While there are none scheduled, speakers from the Federal Reserve are likely to make comments Friday after exiting the policy blackout period late Thursday.
  • Inflation headlines overnight: Bank of France Governor/ECB Member Villeroy states the "FRENCH ECONOMY GRADUALLY EXITING INFLATION" while the "ECB HAS GROWING CONFIDENCE IN DISINFLATION PATH" Bbg. Germany follows suit "Exits Recession But Economy Only Stagnated Last Quarter" w/ PRELIM 2Q GDP FALLS 0.6% Y/Y. German harmonized CPI just out: +6.5% vs. +6.6% est.
  • Meanwhile, Tsys rebound BOJ left rate steady but adjusted yield curve control late Thursday, allowing 10Y yield "to fluctuate around 0.5", kept 10Y yield target at appr 0.0%.

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