Market Action: it is a quiet start to what should be a relatively quiet week of trading compared to the volatility seen over the last several weeks. Action has also been stifled today with UK and Japanese markets on holiday. Bonds have a decent bid after Chair Powell removed tail risk of a rate hike this year. The softer jobs and services ISM reports helped revive rate cut hopes with nearly 50 bps priced in, and possibly starting as soon as September. Concurrently, rate cuts in Europe are largely expected in June. Bonds could find a haven bid again as Israel reportedly prepares for an invasion of Rafah. There is a very light U.S. data calendar with just claims and consumer confidence of interest. There is a heavy Fedspeak slate but there is not much to be said currently on policy. Supply may be the biggest market mover this week with the $125 B Treasury refunding on tap. There are more earnings reports but most of the big names are out of the way. Treasuries are extending gains with yields about 2 bps lower, even ahead of supply. The 2-year is -1.5 bps at 4.801%, down -20 bps after testing 5% in late April. The wi 3-year is -1.7 bps richer at 4.625%, versus 4.83% from April 26. And the wi 10-year is -1 bp lower at 4.490%. The note recently tested 4.70%. Meanwhile, European rates are about -2.5 bps lower. Wall Street opened in the green with the Dow up 0.5%, teh S&P 500 0.4% higher, and the NASDAQ advancing 0.3%5%. European bourses are some 0.5% firmer. The DXY continues to sag and has fallen to 104.934 and has closed with a 104 handle since April 9.
