Soft Restart After Long Weekend With ISM In Focus

Tsys are a little weaker early Tuesday in the return from the long weekend, with the ISM manufacturing report in focus.

• Sep 10-Yr futures (TY) down 7.5/32 at 131-22.5 (L: 131-20 / H: 131-28), bottoming out in early Europe trade before ticking back up; ~420k traded as activity picks up after the long weekend.
• The 2-Yr yield is up 0.6bps at 0.1466%, 5-Yr is up 1.8bps at 0.8172%, 10-Yr is up 2.6bps at 1.6198%, and 30-Yr is up 1.5bps at 2.2975%.
• Equities are on the front foot (S&P eminis +0.5%), dollar flat.
• Data's the focus today: final May Manuf PMI at 0945ET is the appetizer before the May ISM Manufacturing report at 1000ET; we also get Apr construction spending at 1000ET. May Dallas Fed manufacturing at 1030ET.
• A couple of Fed Board of Governors members on the docket today: VC Quarles speaks at a Politico live event at 1000ET, while Gov Brainard attends an Econ Club of NY event at 1400ET.
• St Louis Fed Pres Bullard told the FT that the US jobs market is "tighter than it looks".
• In supply, a combined $111B in 13-/26-week bill auctions at 1130ET.
• NY Fed buys ~$8.425B of 2.25-4.5Y Tsys.