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What to Watch: Factory Orders, ISM Services

US TSYS
  • Treasury futures are trading higher, extending highs into the open as rates fully recover from Monday's sell-off, back near Friday highs as accts square up ahead Chairman Powell's monetary policy testimony to Congress on Wednesday and Thursday.
  • Jun'24 10Y futures currently +10 at 111-02. Eye on initial technical resistance at 111-02 (High Mar 1) followed by 111-06 (50-day EMA).
  • Midmorning data kicks off with S&P Global US Services/Composite PMIs (final) at 0945ET.
  • Factory Orders and ISM Services up next at 1000ET. Given that Core Service prices have been cited by the Fed as a hurdle in the inflation fight, this release could have a bit more importance than usual. Durables and Cap Goods also released at 1000ET.
  • US Treasury auctions $80B 42D CMBs at 1130ET.
  • Scheduled Fed speak: Fed VC Barr panel discussion on CRA modernization, Q&A, livestreamed at 1200ET. Barr will also attend a virtual roundtable at 1415ET (Q&A, livestreamed).

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