Politics In Focus

Choppy trade amid solid volumes has seen Tsys slightly on the front foot to start the week. Market participants have largely shrugged off Sino-US tensions, w PBOC net liquidity injection helping boost risk appetite a little overnight.

• 370k Sep 10-Yr futures (TY) traded so far (0630ET); last up 4.5/32 at 139-0 8.5 (L: 139-03.5 / H: 139-11.5). In cash, 2-Yr yield is up 0bps at 0.1451%, 5-Yr is down 0.6bps at 0.2882%, 10-Yr is down 1.6bps at 0.6931%, and 30-Yr is down 1.4bps at 1.4328%.
• Politics likely in focus early this week, with a dearth of key data (only Empire manufacturing today at 0830ET of any note).
• Looks like the House of Reps will be recalled this week to deal with legislation on USPS; Fox's Chad Pergram reporting that any such bill "could be expanded to tackle other coronavirus-related measures". House was due to reconvene Sep 15.
• Will be plenty of attention on the Democratic National Convention beginning today, re any signs of potential policies under a Biden admin. And Pres Trump to appear on Fox at 0800ET.
• Atlanta Fed's Bostic speaks on "inclusive innovation" at 1200ET. Most attention on Wednesday's Minutes release.
• In supply, $105B in 13-/26-week bills sold at 1130ET, NY Fed buying $1.75B of 20-30-Yrs.