Edging Higher, With D.C. Negotiations In Focus

Treasuries are a little stronger to start the week, though holidays in Asia meant a late cash open and thin trading in Asia-Pac hours.

• Futures jumped a few ticks as London came in for the cash open, but that move retraced quickly and gains have been only gradual.
• The 2-Yr yield is down 0.4bps at 0.2044%, 5-Yr is down 1.4bps at 0.7533%, 10-Yr is down 2bps at 1.2767%, and 30-Yr is down 1.7bps at 1.9283%. Sep 10-Yr futures (TY) up 3/32 at 134-3 (L: 133-27 / H: 134-03.5) (actually decent volumes considering the quiet Asia-Pac session, ~260k).
• Sharp drops in oil and gold stole the headlines overnight though; equities are a little weaker but off overnight lows.
• A thin data slate to start the week, with just June JOLTS at 1000ET. Fed speakers include Atlanta's Bostic (1000ET) and Richmond's Barkin (1200ET).
• More attention on D.C., where the Senate meets again at 1200ET to pick up on the infra bill again. If no deal to speed up proceedings, bill passage could come 0300/0400ET Tuesday.
• Treas Sec Yellen came out in support to a debt limit rise that's part of a bipartisan and NOT a reconciliation bill, i.e. will be more difficult to pass as it would have to be bipartisan.
• In supply, $105B 13-/26-week bill auction at 1130ET. NY Fed buys ~$1.425B of 10Y-22.5Y Tsy,