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What to Watch: PCE, ECI, Pending Home Sales, U-Mich Sentiment

US TSYS

Tsys weaker (30YY 4.1223% +.0391) - nearly back to where Thu's session began as rates retrace post-ECB support following better than expected German GDP and Italian CPI overnight.
US data coming up at 0830ET:

    • Personal Income (0.3%, 0.4%)
    • Personal Spending (0.4%, 0.4%)
    • PCE Deflator MoM (0.3%, 0.3%); YoY (6.2%, 6.3%)
    • PCE Core Deflator MoM (0.6%, 0.5%); YoY (4.9%, 5.2%)
    • Employment Cost Index (1.3%, 1.2%); followed by
    • Pending Home Sales MoM (-2.0%, -4.0%) at 1000ET and
    • UofM Sentiment (59.8, 59.6), 1000ET
  • Headline watching ahead next Wednesday's FOMC policy annc. Latest from WSJ Nick Timiraos: "The bottom line: while the Fed isn’t data-point dependent and the decision for next week of 75 basis points seems unlikely to change, another uncomfortably high ECI reading might argue for a somewhat higher terminal rate and could muddy the debate over slowing the pace in Dec."

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