UK T-BILL AUCTION RESULTS: 1/3/6-month UKTBs

The EU has announced it will be looking to sell the following at its auction next Monday, October 20:

• Up to E2.5bln of the 2.625% Jul-28 EU-bond (ISIN: EU000A4D5QM6)
• Up to E2.0bln of the 2.75% Feb-33 Green EU-bond (ISIN: EU000A3K4DW8)
• Up to E1.5bln of the 3.75% Oct-45 EU-bond (ISIN: EU000A4EA8Y7)

• MNI: US MBA: MARKET COMPOSITE -1.8% SA THRU OCT 10 WK

• Treasuries are within overnight ranges but hold firmer on the day, underperforming EGBs which benefit from yesterday’s easing of near-term French political risks.
• Today sees calendar focus on the NY Fed Empire Survey for a latest look at regional manufacturing activity/sentiment before the Fed’s Beige Book. Earnings season also continues, with BofA results currently well-received and Morgan Stanley still to come.
• Cash yields are 0.5-2.5bp lower across the curve, bull flattening.
• 10Y yields (currently 4.0148%, -1.7bps) again tested the 4% handle earlier with a low of 3.9975% after yesterday’s 3.9976%, but are finding support at this level. Whilst there were brief clearances on Sep 17 and Sep 11, yields were last materially sub-4% in early April under reciprocal tariff deliberations.
• TYZ5 trades at 113-13+ (+00+) on modest cumulative volumes of 270k.
• An earlier high of 113-17+ matched that from yesterday, in signs of some resistance ahead of a bull trigger at 113-29 (Sep 11 high). The recent uplift has dragged support up to 112-26 (20-day EMA).  
• Data: MBA mortgage applications (0700ET), Empire mfg Oct (0830ET), Beige Book (1400ET). Today’s CPI report has been rescheduled to Oct 24.
• Fedspeak: Miran (0930ET), Miran (1230ET), Waller (1300ET) and Schmid (1430ET) – see FED bullet.
• Bill issuance: US Tsy $69B 17W bill auction (1130ET)
• Politics: Trump participates in press conference with FBI Director (1500ET), Trump hosts Ballroom Dinner (1930ET)
• Earnings: Morgan Stanley still to report along with Abbot Labs and Prologis pre-market. BofA has already reported, beating trading revenue estimates.  MNI Earning Calendar found here.