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What to Watch: Wraping Up Wk Imp/Exp Prices, IP/Cap-U, UofM Sentiment

US TSYS
  • US rates trading weaker, curves steeper (3M10Y +3.521 at -115.225, 2Y10Y +1.543 at -71.398) ahead the final round of data for the week: Imp/Exp Price Index at 0830ET, Industrial Production/Capacity Utilization at 0915ET, UofM Sentiment at 1000ET.
  • If you disregard Wednesday morning's post-CPI knee-jerk lows (TYZ3 109-03), current TYZ3 at 109-17.5 (-6.5) is the lowest since August 23, current 10Y yield at 4.3184% (+.0322).
  • Cross asset: US$ paring a small portion of Thu's rally (BBDXY -.57 at 1253.45), S&P E-Minis firmer (ESU3 +5.5 at 4511.5), West Texas crude holds above 90.0 at 90.53 (+.36).
  • Headline watching: President Biden will deliver remarks on UAW strike today, after negotiators failed to reach a new pay agreement. The time of remarks in unconfirmed but a livestream will be available here.
  • Nothing major from President Biden's “major economic address" discussing Bidenomics late Thursday.

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