Tsy futures trading weaker, near low end overnight range on average volumes (TYH3<270k). Yield curves mixed at the moment, 2s10s +1.690 at -82.467 not far from Wed's 40-year low of -85.240; 10s30s inverted again: -2.846 at -1.723 vs. -3.006 overnight low.

• Awaiting Initial Jobless Claims (230k est), Continuing Claims (1.618M est) at 0830ET.
• US Treasury auctions at 1130ET: $45B each 4W and 8W bills
• Main focus remains on Fri's PPI at 0830ET:
  • PPI Final Demand MoM (0.2%, 0.2%); YoY (8.0%, 7.2%)
  • PPI Ex Food and Energy MoM (0.0%, 0.2%); YoY (6.7%, 5.9%)
  • PPI Ex Food, Energy, Trade MoM (0.2%, 0.1%); YoY (5.4%, 4.7%)
• Deutsche Bank economists will be watching PPI health care services that "have been somewhat volatile of late but appear to be trending lower as the seasonally-adjusted 3-month annualized rate (1.8%) is well below the 6-month rate (3.0%) as well as its year-over-year rate (2.7%)."
  • "That being said, one of the inputs into hospital inflation is the wage growth for hospital workers, specifically from the Employment Cost Index. With year-over-year wage growth just shy of 6%, this could be a major headwind for the Fed in 2023."