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ISM, Infra Feature As Yields Touch 2-Week Lows


Treasuries are a little stronger to start the week. The July ISM release is in focus, with attention also on infrastructure bill progress.

  • 10Y yields touched lowest levels since Jul 21 (1.2173%). Asia-Pac headlines centered around China growth slowdown concerns (weak manuf PMI out overnight), though Tsy gains stalled in European trading amid equity gains. S&P eminis again near all-time highs.
  • The 2-Yr yield is down 0.6bps at 0.1781%, 5-Yr is down 0.8bps at 0.6824%, 10-Yr is up 0.7bps at 1.2288%, and 30-Yr is up 1.4bps at 1.9064%.
  • Sep 10-Yr futures (TY) up 4.5/32 at 134-19 (L: 134-14.5 / H: 134-21). Modest volumes (~230k).
  • Final Jul Manufacturing PMI at 0945ET, with ISM Manufacturing at 1000ET alongside Construction spending.
  • Senate set to take up the process of the infra bill today, after the full text was released Sunday night. Senate meets at noon ET - Democratic leadership looking for potential approval on Thurs.
  • No Fed speakers scheduled.
  • Supply consists of $105B of 13-/26-week auctions at 1130ET. NY Fed buys ~$1.225B of 7.5-30Y TIPS.

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