Easing of lockdown measures in a number of countries, along with the potential tentative reopening of some U.S. states, boosted sentiment on Wall Street Monday. However, the rally looks set to tail off on Tuesday as oil prices continue to tumble.
10-year and 30-year yields have so far held firm despite strong auctions of 2- and 5-year notes Monday, which sent yields on both lower as investors braced for substantial supply to finance the stimulus measures required to mitigate the pandemic fallout. Oil prices fell 13% in Tuesday early morning trading, extending Monday's nearly 25% decline on ongoing fears that storage around the world is rapidly filling.
On the data front, March goods trade balance and wholesale inventory figures are due at 8:30 a.m. ET, before February's S&P/Case-Shiller Home Price index readings at 9 a.m. ET. Auctions will be held Tuesday for $55 billion of 43-day Treasury bills, $35 billion of 7-year notes and $22 billion of 2-year FRNs .