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What to Watch: Retail Sales, Fed Speak, London Staff Change

OUTLOOK

Tsys trading firmer, near recent session highs, robust volumes (TYZ2>430k) as rates react positively to news of Chancellor of the Exchequer Kwasi Kwarteng has been removed from office amid a major political and financial market pushback against the economic plans put forward in the 23 September 'fiscal event'. PM Truss to hold press conf at 0930ET.

  • Yield curves extend inversion w/ Bonds outperforming on the news (10YY 3.8810% -.0625; 30YY 3.8667% -.0497), 2s10s at -54.470 -2.255 - lowest since April 2000..
  • Upcoming data at 0830ET
    • Retail Sales Advance MoM (0.3%, 0.2%); Ex Auto MoM (-0.3%, -0.1%)
    • Retail Sales Ex Auto and Gas (0.3%, 0.2%); Control Group (0.0%, 0.3%)
    • Import Price Index MoM (-1.0%, -1.1%); YoY (7.8%, 6.3%)
    • Export Price Index MoM (-1.6%, -1.0%); YoY (10.8%, 9.4%) followed by
    • Business Inventories (0.6%, 0.9%) at 1000ET
    • U. of Mich. Sentiment (58.6, 58.8) 1000ET
  • Fed Speakers:
    • KC Fed George eco-outlook at 1000ET
    • Oct-14 1030 Fed Gov Cook eco-outlook, moderated Q&A, 1030ET
    • Oct-14 1215 Fed Gov Waller on digital currency, text and Q&A, 1215ET

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