5-Yr Supply In Focus

A narrow range in overnight trade again for Treasuries, with the cash curve shifting slightly higher. 5-Yr Note auction the main point on the schedule today.

• Jun 10-Yr futures (TY) steady at at 132-31 (L: 132-26.5 / H: 133-00). Roll activity remains responsible for most of the action: ~680k volume for Jun21 vs ~530k for the Sep contract.
• The 2-Yr yield is up 0.5bps at 0.1466%, 5-Yr is up 0.5bps at 0.7759%, 10-Yr is up 0.7bps at 1.5655%, and 30-Yr is up 0.6bps at 2.2533%.
• Tsys weakened a bit in Asia-Pac trade largely on a surprisingly hawkish RBNZ meeting outcome, but have bounced back a little in European trade, alongside Bunds on continued ECB speaker dovishness.
• We get two appearances by Fed VC Quarles today: 1000ET (on insurance regulations) and 1500ET (on the economic outlook), and he's the last scheduled Fed speaker until Jun 2.
• In supply, we get $26B 2Y FRN auction and $35B in 119-day bills at 1130ET, with $61B 5Y auction at 1300ET. NY Fed buys ~$8.425B of 2.25-4.5Y Tsys.
• In Washington, some attention on first of 2 days of Congressional hearings with the heads of the 6 largest US banks on their pandemic response (starts 1000ET).