Powell In The Hole

Treasuries have recovered from early lows but remain within limited ranges ahead of the Jackson Hole (virtual) symposium, data, and 7-Yr supply.

Sep 10-Yr futures (TY) up 1.5/32 at 139-11.5 (L: 139-09 / H: 139-14); The 2-Yr yield is down 0.6bps at 0.1446%, 5-Yr is down 0.4bps at 0.2815%, 10-Yr is down 0.8bps at 0.6802%, and 30-Yr is down 0.8bps at 1.4058%.

Potentially weighing on Tsys overnight: TYV0 140.00 call selling in 40k all day is "hedges for Asian a/c's to their long underlying positions" per a market source.

That of course comes just ahead of Fed Chair Powell's speech at Jackson Hole beginning 0910ET, contact us if you haven't seen our preview.

Data includes 2nd reading of Q2 GDP at 0830ET (modest upward revision expected), with jobless claims alongside. Then pending home sales at 1000ET and Aug Kansas City Fed manufacturing at 1100ET.

Following on from the week's solid auctions so far (despite large size), we get $47B in 7-Yr notes for sale at 1300ET ($65B combined in 4-/8-week bills at 1130ET, plus bill announcements at 1100ET). NY Fed buys ~$1.750B of 20Y-30Y Tsys.