U.S. Treasuries in the belly of the curve are set for a modestly higher start while the long bond is expected to show early relative weakness after underperforming yesterday.
Treasury futures dipped last evening, hitting lows during the early portion of the Asian session. The market recovered a portion of the losses in short order, continuing its rebound into early morning trade.
The market will receive more inflation-related data in the form of July PPI at 8:30 ET while the U.S. Treasury will sell $21 bln in 30-yr bonds.
The U.S. Dollar Index is down 0.2% at 105.02.
2-yr: -4 bps to 3.15%
3-yr: -6 bps to 3.08%
5-yr: -6 bps to 2.86%
10-yr: -5 bps to 2.74%