Heavy Volumes Bely Quiet Week Opener

Tsy futures drifted near second half lows after the closing bell, reversing highs set around midmorning as a tepid risk-on tone grudgingly developed as equities continued to make new all-time highs (eminis 3424.0).

• Heavy volumes belied an otherwise muted week opener: late summer trade tied to surge in Sep/Dec rolling (1.3M TYU; TYU/TYZ >700k)
• Over $11B in swappable corporate supply and related hedging contributed to the steady selling from 1000ET-1300ET.
• No significant data (Chicago Fed: Jul National Activity Index +1.18 Vs Jun +5.33), participants kept an eye on muted headline risk (simmering US/China tension, ongoing pandemic concerns). Republican National Convention kicks off Monday evening, while the first remote Jackson Hole, WY economic policy symposium begins Thursday through Friday, Fed Chair Powell speaking Thursday at 0910ET.
• The 2-Yr yield is up 1bps at 0.1534%, 5-Yr is up 1.6bps at 0.2803%, 10-Yr is up 2.1bps at 0.6493%, and 30-Yr is up 1.1bps at 1.3515%.