The Day Ahead: No Econ Data. G20 Meeting. Fed Buys Treasuries. Plosser Speaks

After a quiet overnight trading session, interest rates in the long end of the yield curve are moving higher and equity futures are heading sideways. 

S&P 500 futures are +2.25 at 1178.00 and Dow futures are +24 pointsat 11,107. So far this week, the S&P has risen 0.35% and the Dow has gained 0.76%.

The benchmark 10-year Treasury note closed near session yield highs yesterday and failed to correct in overseas action. 10s are currently -0-10 at 100-13 yielding 2.578%.  Rates sheet influential MBS coupon prices are cheaper as a result. The December FNCL 3.5 is -0-10 at 100-19. The December FNCL 4.0 is -0-6 at 103-02.  MND's current coupon is unchanged vs. 10 years TSYs and 10yr interest rate swaps but a bp wider vs. the 5yr note.

The dollar index is +0.01% at 77.417.  Light crude oil is up 0.91% at $81.29 per barrel while gold prices are 0.10% lower at $1,322.31 per ounce.

No significant data will be released today, but the Group of 20 finance ministers and central bankers begin a two-day meeting in South Korea. 

Currency wars and global imbalances will top the agenda this weekend, according to economists at BMO, who cite a group communiqué suggesting the group will look to “move towards more market-determined exchange rate system, and refrain from competitive undervaluation of our currencies while minimizing adverse effects of excessive volatility and disorderly movements in exchange rates”. 

Key Events Today:

No significant data.

10:15  ― Fed outright Treasury coupon purchase of maturities between 04/15/2013 and 09/30/2014 (estimated purchases :$2.45bn)

12:45 ― Charles Plosser, president of the Philly Fed, speaks on regulatory reform in  closing remarks before the Regulatory Reform Media Seminar hosted by the Federal Reserve Bank of Philadelphia.

 ISSUANCE
* 15:00 Treasury releases investor class auction allotments
* Posco, $700m 10-year [PX'D T+179]; BAML/BNP/DB/GS/MS
* BNS, $2.5 bln 5-year [PX'D T+57.25]; BAML/Barc/MS/Scotia
* BPCE, $500m tap of 2.375% 10/4/13s [PX'D T+160]; BAML/Citi/Natixis
* Hutchison Whampoa, $2 bln callable year 5, step-up in year 10 [PX'D 6%]; GS
* BBK, $500m 5-year [lnch ms+337.5]; C/DB/HSBC
* ebay, $1.5 bln 3-part 400m 3s, 600m 5s, 500m 10s [PX'D T+42(3s);+57(5s);+77(10s)]; BAML/Citi/JPM
* Lukoil, Eurobond offering; Barc/ING/RBS
* Fortescue, $2.04bn 5-year; JPM/RBS; roadshow this week
* CODELCO, issuance expected following roadshow; DB/HSBC