FED: US TSY TO SELL $79.000 BLN 26W BILL JUL 13, SETTLE JUL 16

• US TSY TO SELL $69.000 BLN 17W BILL JUN 10, SETTLE JUN 16

Senator Mitch McConnell (R-KY) and Senator Susan Collins (R-ME), the top Republican appropriator in the Senate, have appeared to rule out a third Republican reconciliation bill before the midterm elections in November. Speaking at an Air Force appropriations hearing, McConnell said, "I think it's safe to conclude there will not be another reconciliation bill. So it's really not an option." Colllins responded, "I agree with that assessment," per Anthony Adragna at Punchbowl News.

• As noted in earlier bullet (US: House To Vote On Immigration Bill, GOP Discusses Reconcilliation 3.0), the House Republican Study Committee met yesterday with CBO's Phillip Swagel, Joint Committee on Taxation's Tom Barthold, and representatives from the Heritage Foundation, the Fiscal Lab on Capitol Hill, and the Foundation for Government Accountability to discuss fiscal details of a new reconcilliation package.
• RSC Chair August Pfluger (R-TX) told Fox News a third bill could tackle "affordability, fraud, and defence along with housing, energy, and healthcare" as central components of the next legislative package.
• Department of Defense officials have suggested that President Trump's USD$1.5 trillion Pentagon request could be partially funded via reconciliation. The strategy has helped the GOP draft a much lower cost Pentagon bill, leaving around USD$350 to be funded in a party-line bill.
• If Republican appropriators conclude that reconcilliation 3.0 is unworkable, there might be a push for a defence supplemental, or expansion of the Pentagon funding bill. Such move would provoke calls for Democrats to include a parallel hike in non-defence spending. 

• Though well ahead of month end positioning - June quarterly index rebalancing could also be another factor behind equity indexes retreating to early May levels: the DJIA -0.45%, SPX emini -1%, the tech-heavy Nasdaq -1.7%.