Hanging On Fiscal Hopes

Tsys are edging lower as stock futures edge back to Wed's highs on fiscal stimulus hopes, and ahead of a heavy data slate.

• Risk appetite has been buoyed overnight by apparent progress on the fiscal stimulus front - Roll Call suggesting that Sec Mnuchin has offered more on the state/local aid and unemp insurance fronts, in a $1.625B package. Discussions w House's Pelosi due to resume today.
• Dec 10-Yr futures (TY) down 4.5/32 at 139-12.5 (L: 139-11.5 / H: 139-17) The 2-Yr yield is up 0.2bps at 0.1289%, 5-Yr is up 0.5bps at 0.2815%, 10-Yr is up 1.7bps at 0.7005%, and 30-Yr is up 2bps at 1.4755%.
• Decent volume overnight too (TYZ0 just under 300k as of 0630ET), considering several Asian markets are observing holidays.
• At 0730ET, Challenger reports layoffs data for Sep. 0830ET sees weekly jobless claims and August personal income/PCE prices. 0945ET we get final Sep Mfg PMI, then at 1000ET Sep ISM Manufacturing, as well as Aug construction spending.
• NY Fed's Williams appears twice at 1100ET (including recorded remarks); Gov Bowman at 1500ET.
• $65B in 4-/8-week bill sales at 1130ET; NY Fed buying ~$1.75B of 20-30Yr Tsys.