SWEDEN: Main Parties Face 17:00CET Deadline On Submitting Plans For Gov't (2/2)

• MNI: US MBA MORTGAGE APPS -2.7% SA THRU OCT 09 WK

"*EU CONFIRMS CLOSE TO SOLUTION WITH ITALY ON GAS PRICE CAP PLAN" bbg

"*EU HAS BEGINNINGS OF AGREEMENT IN PRINCIPLE ON ITALY MEASURE"

Treasuries are modestly firmer on the day as they pare yesterday’s sell-off ahead of today’s CPI report for September, with there seemingly a high bar to shifting current expectations for a quarterly hiking profile at FOMC SEP meetings. Volumes have been reasonable for a pre-CPI overnight session. 

• Cash yields are 0.3-1.7bp lower on the day with declines led by 3s and 30s lagging.
• TYZ6 trades at 104-26 (+02+) in the middle of overnight ranges having held within yesterday’s range throughout with its high of 105-01, on cumulative volumes of 330k.
• Gains are considered corrective with resistance seen at 105-02 (20-day EMA) before 105-21 (Sep 15/16 lows). The trend condition remains bearish with support at 103-28+ (Oct 1 low) before 103-20+ Jun 2007 low continuation).
• Data: Weekly MBA (0700ET), CPI Sep (0830ET), Real av earnings Sep (0830ET)
• Fedspeak: Barkin fireside chat (1330ET), Beige Book (1400ET), Goolsbee in Yahoo interview (1500ET) and NPR interview (time unknown)
• Bill issuance: US Tsy $75B 17W bill auction (1130ET)
• Politics: Trump political rally in Arizona (1600ET) and then Montana (2015ET)
• Earnings: BofA (trading revenue missed) and BlackRock (AUM smaller than expected but adjusted EPS beat comfortably) have reported, with Morgan Stanley still to come before the open. ASML earlier reported Q3 net sales close to expectations.