MARKET INSIGHT: What to Watch: Fed Speak, GDP, PCE, Pending Home Sales, 7Y Sale
May-26 11:25
Rates trading mixed ahead the opening bell, 2s-10s outpacing mildly weaker Bonds, 10s off highs (10YY fell to 2.7023% low), as yield curves resume bull steepening
(2s10s +2.771 at 27.491; 5s10s off inversion at 3.967 +1.697).
- Carry-over support for stocks (ESM2 +27.25 at 4,004.0) after minutes showed no discussion of larger rate hikes. Not much gleaned from minutes that hasn't already been said, perhaps today's Fed speakers will provide some insight:
- Fed Gov Brainard on digital assets w/ House panel at 1200ET
- SF Fed Daly on CNBC's The Exchange at 1300ET
- Economic data kicks off at 0830ET:
- Weekly Claims (218k, 215k); Continuing Claims (1.317M, 1.310M)
- GDP Price Index (8.0%, 8.0%); Annualized QoQ (-1.4%, -1.3%)
- Personal Consumption (2.7%, 2.8%)
- Core PCE QoQ (5.2%, 5.2%), followed by
- Pending Home Sales MoM (-1.2%, -2.0%); YoY (-8.9%, -8.0%) 1000ET
- Kansas City Fed Manf. Activity (25, 18) at 1100ET
- Tsy auctions:
- US Tsy $35B 4W and $30B 8W bills at 1130ET
- US Tsy $42B 7Y note auction (91282CES6) at 1300ET
- Geopol risk: BBC: No EU Ambassadors Meeting Tomorrow On Oil Embargo: Jessica Parker at BBC News tweets: "Hearing EU ambassadors won't meet tomorrow as had been mooted. So it's all down to Sunday's coreper discussion ahead of EUCO. Oil embargo unresolved & some diplomats questioning whether this extraordinary European Council was really a good idea"
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US-RUSSIA: Pentagon Spox: We Want Russia Unable To Threaten Neighbours Again
Apr-26 11:17
Speaking to CNN, Pentagon spox John Kirby states, when asked about the state of the Russian military after two months of war, that "They are a weaker military, they are a weaker state right now. ... We want Russia not to be able to threaten their neighbors again in the future."
- When asked whether Ukraine can 'win' the war, and what 'winning' would look like, Kirby states that "Winning is certainly in the cards...They have certainly defeated Mr Putin's strategic objectives thus far." Says that what winning looks like us up to Ukrainian President Volodymyr Zelenskyy.
- Kirby states that it is watching events in Moldova and the breakaway region of Transnistria closely, but that it is too soon to comment on the reported explosions in the Transnistrian capital Tiraspol.
US TSY FUTURES: BLOCK, 5Y Buy
Apr-26 11:07
- +5,000 FVM2 113-01 (+5), buy through 113-00.75 post-time offer at 0652:48ET
LIBOR: JAPAN FIX - 26/04/22
Apr-26 11:01
- JY0001M -0.05347 0.00000
- JY0003M -0.01754 0.00000
- JY0006M 0.03255 0.00000
