Futures Back From Lows

Tsy futures have recovered some poise after their early downtick, with TYU2 last dealing a little shy of the peak of its 0-11 session range, -0-05 at 116-01.

• The early weakness came after the previously outlined hawkish weekend Fedspeak from Governor Waller, as well as weekend confirmation from U.S. President Biden that he will speak with Chinese counterpart Xi “soon.”
• Broader news flow has been light since the reopen of futures trade, with wider market liquidity limited (including the closure of cash Tsy markets) on the back of the observance of the Juneteenth holiday in the U.S.
• There is a story is doing the rounds from China’s state-owned Shanghai Securities News, which suggests that China is planning to take “extraordinary” measures to combat the divergence in upstream and downstream manufacturers’ profitability. The article suggests that the move looks to fend off risks surrounding investment, citing a senior researcher with a government thinktank. This hasn’t got much in the way of wider airing.
• Note that WTI futures are back from best levels of the day, last $0.50 above settlement. This comes after the contract suffered a sharp loss on Friday.
• Elsewhere, the 3 major e-mini futures contracts are 0.3-0.7% better off on the day, with the NASDAQ 100 leading the gains in that space.