Bond Prices Edge Higher – 10-Year 2.325%

Longer dated bonds are firmer, while yields at the short end are fractionally higher in bull flattening trades in many sovereign markets. Spanish paper is leading the rally with the 10-year rate down over 5 basis points after a successful bond auction and comments from Spain’s Economy Minister Luis de Guindos who said Catalonia’s independence won’t happen. There wasn’t much other news flow. The U.S. 10-year Treasury steadied around 2.32%. Equities are either side of unchanged after a mostly positive session in Asia. The markets will zero in on another batch of Federal Reserve speakers while looking forward to the September jobs report on Friday.

Fed speak has Philadelphia’s Patrick Harker on CNBC at 8:30 a.m., Governor Jerome Powell on Treasury market practices at 9:10 a.m. with a following Q&A. San Francisco’s John Williams will speak at the St. Louis community banking event at 9:15 a.m. Harker speaks on investing at 9:30 a.m. followed by Kansas City’s Esther George at 4:30 p.m.

Thursday’s calendar has the initial weekly jobless claims and August trade deficit at 8:30 a.m. ET with August factory orders due at 10 a.m.

Treasury will offer details on next week’s auctions at 11 a.m., with some of the sales pushed forward a day due to the Monday Oct. 9 close for Columbus Day. The details include those for the new three-year notes and reopened 10-year auctions Tuesday with the reopened 30-years sale Thursday. Tuesday will see the auctions of the four- and 52-week bills along with the three- and six-months.

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