Tsys Finish Off Highs Tuesday, Clarida & ADP Eyed

T-Notes open just below late NY levels, last -0-01 at 134-31.

• The space stuck to a narrow range on Tuesday, with T-Notes closing around the mid-point of the session, after a brief and limited showing through Monday's highs (although technical resistance at 135-07 remained untested). Cash Tsys finished the day little changed to 1.0bp richer across the curve. Broader volume was muted, with the early rally fading as U.S. equities ticked away from lows and closed higher. Oil futures recovered from lows but were still comfortably lower on the session.
• Fed Governor Bowman was far less aggressive than Waller re: the labour market, as she noted that the it will take time for that area to heal post-COVID-19, while underscoring the idea that more work is required in order to foster an economic recovery.
• Services PMIs from across the globe will headline ahead of the NY session on Wednesday, although the most notable European/UK releases will represent final prints. The ISM services survey & ADP employment data headline the U.S. economic docket on Wednesday, although more focus is set to fall on comments from Fed Vice Chair Clarida.