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What to Watch: Flash PMIs, Fed Speakers Return

US TSYS
  • Treasury futures trading mixed, short end firmer as curves add to Thu's broad steepening (2Y10Y at -64.448 vs. -80.048 late Wed) in the aftermath of FOMC/BOE hawkish hold (implicit higher for longer) policy announcements.
  • Yields actually climbed to the highest levels since Dec'07 overnight before receding slightly: 10YY currently 4.4783% vs. 4.5064% high, 5YY at 4.5943% vs 4.6246% high.
  • Scheduled economic data: S&P Global flash PMIs at 0945ET.
  • The Federal Reserve is out of their self-imposed policy blackout. Scheduled Fed speakers: Fed Gov Cook at AI conference, text, no Q&A at 0850ET. Boston Fed Collins will speak at 1000ET. Both at 1300ET (separate events), SF Fed Daly on economy, policy and MN Fed Kashkari fireside chat, audience Q&A, livestreamed.
  • Headline watching: No positive development as yet re: US government funding resolution to avoid a shutdown on October 1.

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