US TREASURIES UPDATE - Cook hearing continues; UMich mixed

Univ of Michigan data was mixed: overall sentiment was down, current condition rose and expectations fell. On inflation, readings remain well below spikes seen in April and May. Bottom line, the certainty that consumers, economists , traders and the Fed yearn for remains elusive. That said, Fed Powell’s more cautious tone and softening stance on rate cuts from Jackson Hole last week keeps rate cut hopes alive. Next Friday’s jobs report will be key for markets and Fed. Fed Gov Lisa Cook’s case is in front of judge this morning. But that might be too much to ponder ahead of the major Labor Day holiday in USA.

As of 11:10ET, this week’s auctions are mixed. The new 2Y awarded Tues at 3.641% is trading around 3.635% New 5Y sold Wed at 3.724% and is now around 3.709%. New 7Y sold yesterday at 3.925% and is now around 3.939%. The 2/30Y curve has been bouncing around but clearly has a steepening bias. It is now at +128.5 vs +123.4 bps.