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What to Watch: Weekly Claims, Home Sales, Stock Earnings

US TSYS
  • Treasury futures back under pressure, still above Monday's lows, front month Sep'23 10Y futures mark 112-16.5 low (-15.5), 112-18.5 last, yield gains +.0372 to 3.7855%. Trading desks site more flow driven than headline related while German Bunds trade softer as well.
  • Modest overnight summer volumes (TYU3 appr 275k) as markets await weekly jobless claims and Philly Fed business outlook at 0830ET; Existing Home Sales and Leading Index at 1000ET.
  • Fed remains in media blackout in regards to policy ahead next week Wednesday's FOMC rate decision. Fed funds July pricing in 96% chance of 25bp hike w/ implied rate of +24bp to 5.318%.
  • Wrapping up the week's Treasury supply, $70B 4W, $60B 8W bill auctions at 1130ET
  • Meanwhile, equity earnings continues: J&J, KeyCorp, Fifth Third, Phillip Morris, AA, Newmont, Travelers and Abbott Labs all announced this morning.
  • Expected after the close: Capital One, PPG and CSX.

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