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What to Watch: Housing Starts, Building Permits, Corp Earnings Late

US TSYS
  • Treasury futures firmer but off overnight highs after lower than expected UK CPI data (0.1% MoM vs. 0.4% est) saw front month Sep'23 10Y futures hit 113-06.5 high. Futures have been scaling back support ever since: 10s currently +7 at 112-31, curves mixed: 3M10Y -4.998 at -167.214, 2s10s +1.089 at -97.393.
  • Limited data today: MBA Mortgage Applications came out at 1.1% vs. 0.9% prior; Housing Starts and Building Permits wrap things up early at 0830ET.
  • US Treasury auctions $46B 17W Bill auction at 1130ET followed by $12B 20Y Bond re-open auction (912810TS7) at 1300ET.
  • Corporate bond issuance should lend some rate lock hedging flows from banks upon exit of earnings blackout, Morgan Stanley 4pt on tap (details TBA) this morning after Wells Fargo led Tuesday's corporate supply with $8.5B 2-tranche issuance.
  • Banks announced earnings this morning: US Bancorp, Northern Trust and Goldman Sachs. After the close: Zions Bancorp, Discover, Netflix, IBM, Alcoa, Crown Castle, Equifax, Tesla, United Airlines.

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