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What to Watch: Fed Speak, Bullard: "Not Sufficiently Restrictive"

US TSYS
Tsy futures extend lows (30YY climbs to 3.9058% high) after StL Fed Bullard discussed economy/monetary policy: Fed policy not at "sufficiently restrictive level" while hikes have "only had limited impact" on stemming rise in inflation. Decent volumes (TYZ2>450k), yield curves steeper after making new all-time lows yesterday, 2s10s +1.305 at -65.203), year end step down pricing stable.Additional Fed speakers:
  • Fed’s Bowman Discusses Financial Literacy and Inclusion at 0915ET
  • Fed’s Mester Speaks at Financial Stability conf, 0940ET
  • Fed’s Jefferson, MN Fed Kashkari panel discussion, 1040ET
  • MN Fed Kashkari Takes Part in Moderated Q&A at 1345ET
  • Fed Chair Powell, Williams and Daly Honor Chicago Fed Evans later this evening at 2005ET
  • Upcoming data at 0830ET:
    • Initial Jobless Claims (225K, 228K); Continuing Claims (1.493m, 1,510M)
    • Housing Starts (1.439m, 1.411m); MoM (-8.1%, -2.0%)
    • Building Permits (1.564M, 1.515M); MoM (1.4%, -3.2%)
    • Philadelphia Fed Business Outlook (-8.7, -6.0) followed by
    • Kansas City Fed Mfg Activity (-7, -8) at 1100ET
  • Tsy auctions:
    • US Tsy $65B 4W, $55B 8W bill auctions 1130ET
    • US Tsy $15B 10Y TIPS re-open (91282ZCEZ0) 1300ET

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