FED: US TSY 29Y-11M BOND AUCTION: NON-COMP BIDS $26 MLN FROM $22.000 BLN TOTAL

Jake Sherman at Punchbowl News reporting that, "Preparations are underway for President-elect Donald Trump to address the entire House Republican Conference when he comes to the Capitol tomorrow, according to multiple sources familiar with the planning."

• Trump's visit, should it go ahead, comes ahead of internal leadership elections for House and Senate leadership on Wednesday. Trump's close ally House Speaker Mike Johnson (R-LA) is expected to maintain his position at the top of the House Republican conference, pending confirmation in the House as Speaker on January 3, when he will need close to unanimous support from House Republicans.
• On Thursday, House Republicans will also vote on a new House Rules package that may seek to wind down some of the measures that empowered conservative hardliners to obfuscate legislation and destabilise the chamber since the GOP took control in January 2023.  
• Senate Republicans will also vote for the next Senate Majority Leader, with Senate Majority Whip John Thune (R-SD) currently a slight favourite to defeat Senator Rick Scott (R-FL), the preferred choice of Trump-aligned conservatives.
• Should Scott win the leadership position, it would initiate a period of at least two years of ascendent power for Trump and his allies in the White House and Congress and put Trump in a strong position to confirm his executive branch nominees and pursue his legislative agenda. 

We've just published our preview for the October CPI report - PDF here.

• Analyst forecasts for October's CPI report (out Wednesday) show a central expectation that sequential inflation will come in relatively steady compared with September.
• The MNI consensus for core CPI is 0.30% M/M (median) / 0.29% (mean) unrounded, vs 0.31% prior, while headline is seen at 0.20% M/M (median) / 0.21% (mean), vs 0.18% in September. These are in line with BBG consensus medians, and as suggested by the means, there is a slight downside bias to core.
• Forecasts appear aligned on a fairly sharp pickup in core goods prices (was 0.17% in Sept, est 0.23% in Oct), driven by used cars.
• The potential for tariffs will put more focus on core goods inflation in the months ahead: its deflationary contributions are already fading, and an outcome in line with consensus would mark a 17-month high.
• Core services are seen steady at 0.35% (0.36% Sep), with shelter inflation looking very similar to September, and rebounding prices in lodging offset by a pullback in airfare price pressures.
• In other words, the largest core categories are seen basically unchanged, but the volatile categories are seen reversing prior moves and essentially offsetting each other.