US TSYS: Holding Near Session Lows
Dec-09 20:14By: Bill Sokolis
US Treasuries+ 1
- Treasuries gradually extended session lows by midday, have held to a narrow range through the second half, curves bear steepening: 2s10s +1.983 at 6.673, 5s30s +1.770 at 31.624.
- The Fed in blackout and limited data to kick off the week: Wholesale trade sales lower than expected (-0.1% vs. 0.2% est) while the prior was uprevised to 0.5% from 0.3%. NY Fed consumer inflation expectations all increased a tenth in November, albeit with the 3Y metric exaggerated by rounding.
- The main data focus is on on CPI & PPI inflation data on Wednesday & Thursday respectively.
- Meanwhile, projected rate cuts into early 2025 have receded slightly from late Friday (*) as follows: Dec'24 cumulative -21.5bp (-22.2bp), Jan'25 -27.9bp (-29.7bp), Mar'25 -44.8bp (-46.6bp), May'25 -54.6bp (-56.4bp).
