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What to Watch: Debt Ceiling Talks; FOMC Minutes; Tsy 2Y FRN, 5Y Sales

US TSYS
  • Treasury futures making moderate gains, extending highs in 10s to 30s. Nevertheless, curves have bounced off yesterday's inverted lows, 2s10s currently +2.727 at -60.750.
  • Main focus remains on the debt ceiling impasse with negotiators expected to return to the White House this morning.
  • Otherwise, with US data out of the way (MBA mortgage apps -4.6% reported vs. -5.7% prior), markets await FOMC minutes from the May 3 meeting at 1400ET.
  • Fed speak: Fed Gov Waller discusses his economic outlook at UofC, text and moderated Q&A.
  • Treasury supply: $22B 2Y FRN notes and $42B 17W bills to be auctioned at 1130ET, followed by $43B 5Y notes auction (91282CHE4) at 1300ET.

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