HALISTER1: UST MORNING CALL: Bonds ‘Correctly Sensitive to Core PCE’

UST MORNING CALL: Bonds ‘Correctly Sensitive to Core PCE’

(Bloomberg) -- “Bonds will be correctly sensitive to core PCE that is expected to bump from 1.7% in January to 1.8%,” and “watch for yields to rally a bit if either consumption or prices don’t meet expectations,” FTN strategist Jim Vogel says in note.
  • Other observations from strategist morning notes:
  • CRT (David Ader): “As we leave last week behind perhaps the most striking element was of a hawkish lean by heretofore dovish members of the FOMC (Evans) and a hawkish lean by members who’ve played both sides of the coin (Bullard)”
    • “We certainly listen to this sort of nuance, make no mistake, but we don’t take it all too much to heart”
  • Marty Mitchell (independent): “We should expect that trading will remain thin with many in the US probably extending the long weekend too and others expected to be unwilling to do too much in advance of Yellen and the payroll report”
  • Seaport Global (Tom di Galoma): “With month-end extensions coming rapidly this week look to buy dips on 10yrs near the 1.95% yield level”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
David Ader (CRT Capital Group LLC)
Jim Vogel (Ftn Financial)
Marty Mitchell (The Mitchell Market Report LLC)
Tom Di Galoma (Seaport Group LLC/The)

Topics
UST Morning Call

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