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What to Watch: Fed Chair Powell at Riksbank CB Symposium; Tsy 3Y Sale

US TSYS

Tsys trading moderately lower, near recent lows, paring Monday's move 30YY currently 3.6757% +.0158 vs. 3.6774% high, yield curves mildly flatter (2s10s -.257 at -68.443. Average volumes (TYH3<265k) as markets await Fed speak main event:

  • Fed Chair Powell on central Bank independence at Riksbank symposium in Stockholm at 0900ET (new policy insight not expected)
  • Data at 1000ET: Wholesale Trade Sales MoM (0.4% est, 0.2% prior), Wholesale Trade Trade MoM (1.0% est, 1.0% prior); more interest in CPI reading for Dec this Thu at 0830ET (MoM 0.0% est; 6.5% YoY).
  • US Tsy auction at 1300ET: $40B 3Y Note (91282CGE5)
  • Stocks: latest earnings cycle kicks off Friday. Financials and large cap US banks are the initial focus, with markets watching for headlines on provisions, costs and capital plans.

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