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US housing starts kick off the shortened week

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Welcome to the holiday-shortened US trading week.

Moderate risk aversion is the theme so far with yields 2-3 bps lower across the curve, Spoos 12 points lower and the yen leading the way. The market wants more from China in the way of stimulus, especially on the fiscal side.

In terms of economic data, US May housing starts are due at the bottom of the hour and expected at 1.400m, flat from April. That will be all in terms of economic data but we will also hear from the Fed’s Williams an Barr at 11:45 am ET.

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