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What to Watch: Trade Resumes, Home Sales, Fed Speak

MARKET INSIGHT
Tsy futures trading weaker - near middle narrow overnight range on improved volumes (TYU2<165k) with cash rates resuming after Mon's Juneteenth holiday. Tsy 30YY +.0754 at 3.3549% -- still well off last Thu's 3.4889% (early Nov'18) high, curves bear steepening off overnight lows, 2s10s +3.699 at 7.565, 5s10s +2.303 -9.670.
  • Economic data gradually resumes:
    • Chicago Fed Nat Activity Index (0.47, 0.47) at 0830ET
    • Existing Home Sales (5.61M, 5.40M); MoM (-2.4%, -3.7%) at 1000ET
  • Fed speakers:
    • Richmond Fed Barkin moderated Q&A at NABE conf, 1100ET
    • Cleveland Fed Mester, Women in Leadership conf, no text, Q&A, 1200ET
    • Richmond Fed Barkin, Risk Mgmt Assc speach, text, Q&A, 1530ET
  • Cross-Asset: Stocks firmer, near recent highs (ESU2 +64.25 at 3740.0); Crude firmer (WTI +1.57 at 111.13). Gold weaker, -6.04 1832.70.
  • Geopol: Wires carrying comments from UK Foreign Sec Liz Truss, the UK will maintain sanctions on Russia until their forces make full withdrawal from Ukrainian territory, adds UK 'is determined to impose more sanctions on Russia'. With inflation spiking, however, gov'ts could be inclined to encourage or seek some accommodation with Moscow in order to facilitate food and energy trade that could depress prices.

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