Early Bonds: U.S. Treasuries mixed with longer tenors expected to show relative strength after lagging yesterday while the 2-yr note is set to begin just below its flat line after outperforming on Monday.
The Reserve Bank of Australia unexpectedly raised its cash rate by 25 bps to 3.85% with Governor Lowe indicating that additional tightening may be required.
In the U.S., Treasury Secretary Yellen said in a letter to Congress that the Treasury Department could exhaust its extraordinary measures by June 1 if there is no deal to extend or suspend the debt ceiling.
Yield:
2-yr: +1 bp to 4.13%
3-yr: -1 bp to 3.83%
5-yr: -3 bps to 3.60%
10-yr: -4 bps to 3.53%
30-yr: -4 bps to 3.78%