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What to Watch: Pop-Up Headline Risk

MARKET INSIGHT

Tsys trading mildly mixed, 2s-5s weaker vs. 10s-30s on light volumes (TYU2<190k) even with London back from Platinum Jubilee holiday. Curves running mildly flatter, 2s10s -.638 at 26.828. Equities firmer, ESM2 +43.0 at 4150.0. Desks alert for pop-up headline risk.

  • Economic data: Quiet after Fri's better than expected employ report showed +390k jobs gain -- no releases Monday while Tue sees Trade Balance (-$89.4B est vs. -$109.8B prior) and Consumer Credit ($34.500B vs. $52.435B prior).
  • No Fed speakers: Fed in blackout through June 16, day after next FOMC policy annc.
  • US Tsys auctions: $45B 13W, $42B 26W bills today at 1130ET. Notes kick off with $44B 3Y tomorrow.

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