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Tight Ranges Despite Fairly Busy Agenda Ahead

US TSYS

Tsys have traded in tight ranges overnight with little direction, though a fairly busy calendar lies ahead, in terms of data, speakers, and the Treasury's refunding announcement.

  • Sep 10-Yr futures (TY) steady at at 135-00 (L: 134-29 / H: 135-01). Volumes very light (<160k).
  • The 2-Yr yield is unchanged at 0.1703%, 5-Yr is up 0.2bps at 0.6489%, 10-Yr is up 0.3bps at 1.1754%, and 30-Yr is up 1.2bps at 1.8529%.
  • The ADP employment reading at 0815ET is the first data highlight. Services/Composite PMI at 0945ET are finals. Then ISM Services at 1000ET.
  • In between those, we get the quarterly Treasury refunding announcement at 0830ET - expectations are for no change in coupon sizes (and the webcast at 1000ET).
  • St Louis Fed Pres Bullard speaks at 0900ET, but the one to watch is Fed Vice Chair Clarida at 1000ET.
  • 17-week bill sale for $30B at 1130ET; NY Fed buys ~$3.225B of 7-10Y Tsys.

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