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Modestly Weaker

US TSYS SUMMARY

Tsys have traded with a modestly weak tone overnight Tuesday. A very quiet Asia-Pac session with holidays in both Japan & China and cash closed until London hours, and not much driving in the European session either.

  • Jun 10-Yr futures (TY) down 4.5/32 at 132-06 (L: 132-05 / H: 132-11.5), on low volumes (~168k)
  • The 2-Yr yield is up 0.6bps at 0.1644%, 5-Yr is up 1.8bps at 0.8414%, 10-Yr is up 2bps at 1.6172%, and 30-Yr is up 0.9bps at 2.2929%.
  • Dollar gains are of some note following Monday's weakness; stock futures a little weaker.
  • 0830ET sees Mar Trade Balance, with Mar factory orders/final Durable Goods report at 1000ET.
  • Fed speakers include SF Pres Daly and Minn's Kashkari in a moderated Q&A at 1300ET; at the same time in a separate moderated discussion is Dallas' Kaplan.
  • Supply consists of $40B 42-day bill auction at 1130ET - we await Wednesday's Treasury Refunding announcement. NY Fed buys ~$1.75B of 20-30Y Tsys.

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