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What to Watch: Fed Speak, CPI, Bank Earnings

US TSYS

Tsys trading moderately lower, off overnight lows w/ futures near middle of Fri wide range. Decent volumes (TYH3>335k) to kick off the new week, yield curves bear steepen (2s10s +2.738 at -67.422).

  • Fed speak over next couple sessions, main focus on Chairman Powell Tue:
    • Atl Fed Bostic moderated discussion (no text, Q&A) at 1230ET,
    • SF Fed Daly WSJ interview, live event at 1230ET
    • Fed Chair Powell on central Bank independence, Riksbank event at 0900ET
  • Monday data limited to Consumer Credit ($25.000B est vs. $27.078B prior) at 1500ET. Later in the week, CPI reading for Dec this Thu at 0830ET (MoM 0.0% est; 6.5% YoY).
  • 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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