Powell And 3-Yr Supply Ahead

Tsys have found a bit of footing in overnight trade with equities fading Monday's gains, but are off session highs as we await further developments on the fiscal front, as well as more Fed speak and supply.

• 2-Yr yield is down 0.4bps at 0.1408%, 5-Yr down 1.4bps at 0.3212%, 10-Yr down 1.5bps at 0.7668%, and 30-Yr down 1.2bps at 1.577%. Dec TYs down 2/32 at 138-27.5 (L: 138-24 / H: 138-30.5)
• Politico reporting this morning that Speaker Pelosi saw stimulus negotiations w Tsy Sec Mnuchin as going "very slowly" - both sides to speak again today.
• This morning the WSJ published an interview with StL's Bullard in which he said markets may be surprised in 2021 as "the economy will continue to improve...and yet the Fed will just keep with its current policy".
• The main highlight of the schedule is Fed Chair Powell addressing the NABE at 1040ET (text and Q&A). We also hear from Philly's Harker at 1145ET, Atl's Bostic at 1400ET, and Dallas' Kaplan at 1800ET.
• Decidedly 2nd tier data today: Aug trade balance at 0830ET; Aug JOLTS at 1000ET.
• In supply, 3-Yr Note auction at 1300ET is the highlight. Also, in Bills, 1130ET sees $60B combined of 42-/119-Days, with 1300ET $34B of 52-Week. NY Fed buys ~$12.825B of 0-2.25Yr Tsys.