5s Continue To Outperform After Last Week's Weakness

Nothing in the way of tangible reaction after U.S. President Biden rolled forwards the estimate for all adults being able to receive the first COVID vaccination shot to the end of May. T-Notes a touch shy of their late NY highs, but a narrow range is in play shortly after the re-open, with the contract last +0-03+ at 133-21.

• The space drew some late support from comments made by San Francisco Fed President Daly, after she noted that although she is not worried about the yield curve at present, the Fed has the tools to deal with any issues if such worries were to arise, including changing the composition of its asset prices. Daly noted that something like operation twist would be "a first tool" because of some of the drawbacks associated with yield curve control, although she wouldn't completely discount the possibility of employing the latter. Earlier in the day Fed Governor Brainard had noted that she is playing close attention to market developments, with last week's move in Tsys catching her eye.
• The wings of the curve were little changed come the bell, while the belly outperformed, as 5s richened by the best part of 4bp.
• Australian GDP data and the latest Chinese Caixin Services PMI print headline the regional docket during Asia-Pac hours.