Market Roundup: Inside Range, Rates Follow Crude's Lead

Rates, still weaker, have climbed to session highs after stocks reversed overnight gains/opened lower on. Still an inside range more or less for both, however, narrow overall ranges at start of shortened 4th of July holiday week.

• Reversal in stocks appeared to coincide with move in crude, WTI trades -1.56 at 106.06 a few minutes after extending high of 108.69, paring losses nearly as quickly w/ WTI trading 107.42 last.
• Limited react to stronger than expected pending home sales +0.7% vs. -3.9%, YoY comes in weaker than the prior month at -12.0%, vs. -11.5% prior. Slight dip in rate futures after Durable New orders +0.7%, ex-trans: +0.7%
  
• Dallas Fed Manf. Activity (-7.3 est vs. -6.5 prior) up next at 1030ET unlikely to cause much of a market reaction either.
• Aside from headline watching, focus turns to several Tsy auctions, front loaded due to shortened week.
  • Jun-27 1130 US Tsy $42B 26W bill, $46B 2Y Note (91282CEX5) auctions
  • Jun-27 1300 US Tsy $45B 13W, $47B 5Y Note (91282CEW7) auctions
• Tsy 2Y notes trading appr 60bps cheaper to last prior 2.519% stop, 5s appr 50bp cheaper than prior 2.736 stop. Tsy auctions $40B 7Y note Tuesday.