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What to Watch: Mid-Range For Bonds

MARKET INSIGHT

Tsys trading weaker, near late overnight lows on modest volume (TYU2 <260k).Bonds near middle of week's range now while yield curves recover slightly after Tue's bull flattening: 2s10s +2.013 at 26.110, 5s30s +.743 at -0.614 (off inverted low of -1.492).

  • Generally quiet mid-week session with focus on Friday's May CPI (0.7% est vs. 0.3% prior). Otherwise, limited data on tap for today at 1000ET:
    • Wholesale Trade Sales MoM (1.7%, --)
    • Wholesale Inventories MoM (2.1%, 2.1%)
  • No Fed speakers: Fed in blackout through June 16
  • US Tsys auctions:
    • US Tsy $30B 119D bill auction at 1130ET
    • US Tsy $33B 10Y note CMB auction (91282CEP2) at 1300ET
  • US Equities: Stocks weaker but off overnight lows (ESM2 -12.75 at 4146.0). Credit Suisse (CS) weaker after profit warning annc.

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