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Rally Continues

US TSYS SUMMARY

Treasuries have gained in late morning European trade Tuesday after flatlining in Asia-Pac hours.

  • Sep 10-Yr futures (TY) near session highs up 5/32 at 134-27 (L: 134-14 / H: 134-28), with strong volumes (~540k), with gains posted in the last couple of hours.
  • Again no particular headline drivers, and equities fairly steady - but the narrative continues to center around Delta COVID variant risks to global economic reopenings.
  • The belly of the curve has outperformed: 2-Yr yield is down 1.2bps at 0.2036%, 5-Yr is down 3.1bps at 0.6738%, 10-Yr is down 1.5bps at 1.1738%, and 30-Yr is down 0.3bps at 1.8165%.
  • A fairly quiet calendar lies ahead. All of today's data is out at 0830ET: Jun Housing Starts and Building Permits.
  • Only supply is 42-Day bills ($35B) at 1130ET. NY Fed buys ~$1.225B of 7.5Y-30Y TIPS.

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