COVID Relief Uncertain As Month Gets Underway

A fairly quiet opening to the week/month, with eyes on Washington: COVID fiscal relief negotiations, Sino-US relations, Tsy refunding announcement, and nonfarm payrolls will provide plenty to chew on.

Bear steepening in the curve has resumed with the long end under a bit of pressure; 5s30s have now reversed last week's flattening.

The 2-Yr yield is up 0.2bps at 0.1073%, 5-Yr is up 1.1bps at 0.2153%, 10-Yr is up 2bps at 0.5478%, and 30-Yr is up 3.3bps at 1.2255%.. Sep 10-Yr futures (TY) down 1.5/32 at 140-1 (L: 139-30 / H: 140-05.5).

We get final Manuf July PMI at 0945ET, then 1000ET sees both Jul ISM and Jun Construction spending.

And a decent slate of Fed speakers: scheduled today are StL's Bullard (1230ET), Richmond's Barkin (1300ET), and Chi's Evans (1400ET).

$105bln in 13-/26-Wk bill sales at 1130ET. With no coupon sales scheduled this week, most attention in the supply space will be on Wednesday's Qtrly Refunding announcement (though the outlook looks unusually uncertain given ongoing lack of fiscal stimulus resolution).