Morning Juice – US Session Prep (6th October)

US Govt shutdown continues

Sentiment
The DXY gained broadly, elevated against the yen as the election of Takaichi to lead Japan’s main governing party reduced the likelihood of rising interest rates. The dollar also rallied against the euro after the resignation of France’s PM raised political uncertainty, along with demand for the dollar as a haven currency. Long-dated Treasury yields rose, tracking a curve steepening in global bond markets.

Japan’s Takaichi, a pro-stimulus lawmaker, is seen as increasing the concern over growing bond supplies and reducing expectations of a BoJ rate increase this month.

The 10-Yr Treasury yield rises 2 BPS to 4.14%, while the 2-Yr yield is little changed, steepening the yield curve.

Economic Releases
No major scheduled releases

Speakers & Events
08:15 ET
ECB’s Escriva Speaks

11:00 ET
BoE’s Governor Bailey Keynote Speech Text Release at Scotland Global Investment

13:00 ET
ECB President Lagarde Speaks in EU Parliament at the Committee & Monetary Affairs. Text Expected

White House Press Secretary Leavitt Speaks

14:30 ET
BoE’s Governor Bailey Speaks at Scotland Global Investment

17:00 ET
Fed’s Schmid Speaks to CFA Society Kansas City on Economic Outlook & Monetary Policy. Text & Q&A Expected With Audience