Consolidating Gains Ahead Of Fed Minutes

Long-end Treasuries continued to gain overnight Wednesday, with a pickup in risk appetite (equities/commodities higher) presenting little obstacle to further upside.

• While gains have stalled a bit in late morning European trade, notably, the 10-Yr yield touched the lowest level since February (1.3280%). Short-end/belly underperforming.
• The 2-Yr yield is up 0.4bps at 0.222%, 5-Yr is up 1bps at 0.806%, 10-Yr is flat at 1.348%, and 30-Yr is down 0.3bps at 1.9712%.
• Sep 10-Yr futures (TY) up 4.5/32 at 133-11.5 (L: 133-06.5/ H: 133-16).
  
• The release of FOMC June meeting minutes at 1400ET is the primary focus of the session. Later, we'll put out some sell-side views on what to expect: mostly surrounds composition/timing of taper, as well as color on how the FOMC views recent jobs/price data.
• The minutes are followed later by an appearance by Atlanta's Bostic (1530ET).
• A quieter day for data, with weekly MBA mortgage applications at 0700ET and May JOLTS at 1000ET. And little in the way of supply (119-day bill auction at 1130ET). NY Fed buys Tsy 10Y-22.5Y for ~$1.425B.