FED: Minneapolis's Kashkari: Inflation Too High, But Labor Under Pressure
Minneapolis Fed President Kashkari (2026 FOMC voter) makes some brief remarks on the economy Thursday - nothing too controversial, and likewise nothing that would suggest he's changed his mind about cutting rates again in December which was his pre-October FOMC view.
- He says: "We have inflation that's still too high, running at about 3%. Some sectors of the US economy look like they're doing great. Some sectors of the labor market look like they're under pressure."
- Recall in September in an essay he said he penciled in a further two more through year-end, in line with the new Dot Plot median. That implies he would support cuts in October and December, representing one more cut than he had envisaged in his June Dot Plot submission for end-2025.
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US-CHINA: USTR's Greer Says US & China Had Staff-Level Talks on Trade Monday
"USTR GREER SAYS U.S., CHINA HAD STAFF LEVEL TALKS IN WASHINGTON ON MONDAY -CNBC INTERVIEW, THINK WE WILL BE ABLE WORK THROUGH ISSUES WITH CHINA OVER RARE EARTH SUPPLY CHAINS" - Reuters
- "HAVE TO SEE WHERE IT GOES WITH CHINA, HARD FOR THEM TO FIND AN OFF RAMP"
- "NOVEMBER 1 TARIFFS DEPENDS ON WHAT CHINA DOES" - Reuters
- "100% U.S. TARIFFS ON CHINA COULD COME SOONER" - Reuters
EGBS: OAT Futures Inching Higher As PS National Assembly Leader Speaks
"FRENCH SOCIALIST LEADER VALLAUD: WE HEAR A SIGN THAT YOU HAVE LISTENED TO US" Reuters
OAT futures are inching higher once again as comments from PS National Assembly leader Boris Vallaud start to filter in. The Socialists haven’t confirmed if they will support (or at least, not censure) the Government yet, but that first headline is optimistic. PS First Secretary Olivier Faure will speak on TF1 at 20:00CET.
- Futures are currently +62 ticks at 122.71, looking to retest the September 5 high of 122.76.
- The best volumes of the session unsurprisingly came as Lecornu announced details of the pension suspension, with ~30k lots going through between 1420-1430BST.
- For now, cumulative daily volumes in OATs are still below those seen last Monday (when Lecornu’s resigned from his first stint as PM).
FED: US TSY 26W BILL AUCTION: HIGH 3.685%(ALLOT 88.60%)
- US TSY 26W BILL AUCTION: HIGH 3.685%(ALLOT 88.60%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 21.90% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 8.13% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 69.97% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 2.95
