US STOCKS: Midday Equities Roundup: Record Highs on Soft Inflation Data

• Tsy futures trade weaker (FVZ5 -5 at 109-09.75; TYZ5 currently -7 at 112-21) ahead of the $70B 5Y note auction (91282CPA3) at 1300ET, WI is currently running at 3.707%, 1.7bp rich to last month's tail.
• August auction recap: Tsy futures dipped (FVZ5 at 109-12 from 109-12.75 at the cutoff) after the latest $70B 5Y note auction (91282CNX5) tailed: 3.724% high yield vs. 3.716% WI; 2.36x bid-to-cover vs. 2.31x prior.
• Peripheral stats: Indirect take-up 60.48% from 58.28% prior, directs rose to 30.74% vs. 29.50% prior, primary dealer take-up retreated to 8.78% vs. 12.29% prior.

European yields closed largely unchanged Wednesday.

• The space saw a light bid in early trade, with cash bonds catching up to US Treasury gains after the European close Tuesday.
• Bunds were helped by German IFO sentiment that came in lower than expected across all of the headline indices (telling a different story to Tuesday's solid Services PMI), as well as ongoing concerns over Russia-Ukraine.
• However, gains petered out. The broader space was weighed down by supply, including short-term BTPs, 7Y Germany, and soft demand in a 5Y UK auction, while US corporate issuance (a $15B sale announced by Oracle) was also seen as a global factor.
• Additionally, OAT spreads widened after French unions called for demonstrations on October 2 after meeting with PM Lecornu, drawing a similar reaction across semi-core/peripheries.
• Gilts slightly outperformed Bunds, with very mild bull flattening in both the UK and German curves. Periphery/semi-core EGB spreads closed modestly wider.
• BOE's Greene speaks after the cash close. Thursday's data includes French consumer confidence, Eurozone money supply and UK CBI sales, while we also get the SNB decision and the ECB's Economic Bulletin.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is unchanged at 2.022%, 5-Yr is down 0.1bps at 2.327%, 10-Yr is down 0.1bps at 2.748%, and 30-Yr is down 0.5bps at 3.338%.
• UK: The 2-Yr yield is down 0.1bps at 3.953%, 5-Yr is down 0.6bps at 4.098%, 10-Yr is down 1.1bps at 4.669%, and 30-Yr is down 1bps at 5.487%.
• Italian BTP spread up 2.3bps at 81.7bps / French OAT up 0.5bps at 82.2bps  

• US Data/Speaker Calendar (prior, estimate)
• 09/25 0815 Fed Gov Miran on Bbg TV
• 09/25 0820 Chicago Fed Goolsbee moderated discussion on economy
• 09/25 0830 Initial Jobless Claims (231k, 233k)
• 09/25 0830 Continuing Claims (1.920M, 1.934M)
• 09/25 0830 GDP Price Index (2.0%, 2.0%), Annualized QoQ (3.3%, 3.3%)
• 09/25 0830 Personal Consumption (1.6%, 1.7%)
• 09/25 0830 Core PCE Price Index QoQ (2.5%, 2.5%)
• 09/25 0830 Durable Goods Orders (-2.8%, -0.3%), Ex Trans (1.0%, 0.0%)
• 09/25 0830 Cap Goods Orders Nondef Ex Air (1.1%, -0.1%), Ship (0.7%, 0.3%)
• 09/25 0830 Advance Goods Trade Balance (-$102.8B rev, -$95.4B)
• 09/25 0830 Advance Goods Imports MoM (7.0% rev, --). Exports MoM (0.0% rev, --)
• 09/25 0830 Wholesale Inventories MoM (0.1%, 0.1%), Retail MoM (0.2%, 0.2%)
• 09/25 0900 NY Fed Williams welcome remarks US$ Conf
• 09/25 0900 KC Fed Schmid economic outlook
• 09/25 1000 Fed Gov Bowman moderated discussion
• 09/25 1000 Existing Home Sales (4.01M, 3.95M), MoM (2.0%, -1.5%)
• 09/25 1100 Kansas City Fed Manf. Activity (1, 2)
• 09/25 1130 US Tsy $100B 4W & $85B 8W bill auctions
• 09/29 1300 US Tsy $44B 7Y Note auction (91282CNZ0)
• 09/25 1300 Fed Gov Barr on bank stress testing
• 09/25 1340 Dallas Fed Logan moderated panel
• 09/25 1530 SF Fed Daly
• Source: Bloomberg Finance L.P. / MNI