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Slightly Cheaper With Fedspeak, Empire Mfg Headlining Session

US TSYS
  • Cash Tsys trade slightly cheaper across the curve in a calm start to the week, in narrow ranges and in line with core EU FI. News that President Biden and Congressional leaders are set to meet on Tuesday, along with “constructive” background talks ahead of the event (although Biden stressed that the talks aren’t there “yet”), garnered most of the attention over the weekend.
  • 2YY +1.3bp at 4.000%, 5YY +1.7bp at 3.463%, 10YY +1.7bp at 3.479%, 30YY +1.0bp at 3.799%.
  • TYM3 trades 3+ ticks lower at 115-10+ off a low of 15-08+ with cumulative volumes of just 185k. Support remains at 115-01+ (May 9 low)/114-30 (50-day EMA) whilst resistance seen at 116-16 (May 11 high).
  • Data: Empire mfg index May (0830ET) barring in mind recent volatility, TIC flows Mar (1600ET)
  • Fedspeak: Bostic on CNBC (0730ET), Goolsbee on CNBC (0830ET), Bostic welcome remarks (0845ET), Kashkari moderated Q&A (0915ET), Bostic on BBG TV (1400ET), Bostic media Q&A (1500ET), Gov Cook commencement address (1700ET)
  • Bill issuance: US Tsy $57B 13W, $51B 26W bill auctions (1130ET)

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