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What to Watch: Fed Speak Ahead Wed's CPI

US TSYS
  • Volumes improved with London bank on-line -- but still moderate (TYM3 still under 280k) with many close to the sidelines ahead Wednesday's CPI (0.2% MoM est vs. 0.4% prior; 5.1% YoY est vs. 6.0% prior) and FOMC minutes for the March meeting.
  • NatWest economists suspect weaker energy prices "should weigh on the headline CPI; we expect the earlier drop in energy prices should lead to about a 5% decline in gasoline component, while increases in food prices (0.3%) and the core CPI (0.434%) should not be too different than last month (0.452%)."
  • No data today, participants will be headline watching ahead US Tsy $30B 3Y note auction at 1300ET.
  • Fed speakers kicks off with Chicago Fed Goolsbee, moderated Q&A economics club Chicago w/text at 1330ET. Later in the evening, Philly Fed Harker gives economic outlook at Wharton (text, Q&A) at 1800ET, MN Fed Kashkari, town hall (moderated Q&A, no text) at 1930ET.

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