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What to Watch: Latest CPI, Fed Speak, Bond Sale

US TSYS

Tsys trading firmer, near top end narrow overnight range; 30YY currently 3.6416% -.0299, yield curves extending inversion (2s10s -1.871 at -70.162). Average volumes (TYH3<325k) ahead headline economic data that kicks off at 0830ET:

    • CPI MoM (0.1%, -0.1%); YoY (7.1%, 6.5%); Ex Food and Energy MoM (0.2%, 0.3%); YoY (6.0%, 5.7%), in addition to
    • Initial Jobless Claims (204k, 215k); Continuing Claims (1.694M, 1.709M)
  • Fed speak:
    • Philly Fed Harker eco-outlook, text and Q&A at 0845ET
    • StL Fed Bullard, on eco/mon-pol, Q&A , 1130ET
    • Richmond Fed Barkin, Virginia bankers event, no text, Q&A 1240ET
    • Pres Biden expected to make remarks over inflation data at 1000ET
  • US Tsy auctions: $60B 4W, $55B 8W bill auctions at 1130ET, followed by $18B 30Y Bond R/O (912810TL2) and $60B 35D bills at 1300ET
  • 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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