Infrastructure And Housing Provide Tuesday's Themes

Largely sideways trade for Tsys overnight Tuesday on limited volumes, as the space has largely shrugged off stronger equity futures and a decent drop in the dollar.

• Jun 10-Yr futures (TY) down 1/32 at 132-10 (L: 132-07.5 / H: 132-11.5), just over ~200k traded.
• The 2-Yr yield is unchanged at 0.1531%, 5-Yr is down 0.8bps at 0.8275%, 10-Yr is down 0.3bps at 1.6454%, and 30-Yr is up 0.4bps at 2.367%.
• DXY dollar index off 0.4%; tech leading overnight equity gains, NASDAQ futs up 0.7%.
• Today's data is all about housing: building permits and housing starts at 0830ET.
• Treas Sec Yellen speaking at a Chamber of Commerce event at 0915ET, subject "Building a Better Deal for All Americans" - no specifics provided but presumably will include commentary on post-pandemic economic recovery, including White House's infrastructure plan.
• On that note, Senate Republicans expected to present a new proposal on infrastructure to Biden admin officials today, no time provided.
• Dallas Fed's Kaplan in a moderated discussion at 1105ET.
• In supply, $74B total in 42-D / 52-W bill auctions at 1130ET. NY Fed buys ~$1.2B of 7.5-30Y TIPS.