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What to Watch: Wind-Up to Fed Step-Down

US TSYS

Tsys weaker after higher than expected Spanish CPI/HICP inflation overnight, off recent lows, 30YY currently 3.6562% (+.0363), yield curves mixed: 2s10s +0.116 at -70.060, 5s10s -1.125 at -11.972. Decent volumes (TYH3 >400k) with Asia back from Lunar New Year holidays.

  • Relatively quiet start to the week, focus on Wed's FOMC policy annc followed by employment report for Jan on Friday. Additional policy releases: BOE and ECB on Thursday.
  • Today's sole data point: Dallas Fed Manf. Activity, Jan (-18.8, -15.0) at 1030ET
  • Tsy auctions: US Tsy $60B 13W, $48B 26W bill auctions at 1130ET
  • Equity earnings resume, Whirlpool (WHR) after the close. Announcements accelerate Tuesday: International Paper (IP), Pfizer (PFE), Philips 66 (PSX), Pulte Grp (PHM), McDonalds (MCD), Marathon Petroleum (MPC), Corning (GLW), Sysco (SYY), UPS, GM, Caterpillar (CAT), Exxon (XOM).

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