As far as most news outlets are concerned, Friday's passage of the infrastructure bill is the big news for Monday morning.  At one time, the bond market may have cared quite a lot about such things, but clearly, that time has passed--at least as far as it concerns this example.  New spending in the future would still likely have an impact due to supply implications.  For now, supply concerns are limited to the slate of Treasury auctions and corporate bonds looking for buyers on this week's holiday-shortened schedule.

In terms of trading levels, 10yr yields were jut a few bps weaker overnight and early domestic trading has seen slightly better buying.  The net effect is a substantial preservation of last week's gains with yields well under 1.50%.

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The resilience is all the more impressive in light of the condensed 3/10/30yr auction cycle beginning today.  It wouldn't be a surprise to see bonds struggle with supply to a slightly greater extent than normal on a holiday-shortened week.  And while the official Veterans Day market closure is on Thursday, we expect Friday will have levels of participation that are only slightly better than a post-Thanksgiving Friday.  In other words, the week is basically over by Wednesday afternoon.