A Flat Restart

A flat re-open for TYZ1, with the contract a little shy of its NY highs, unch. at 130-18.

• The curve twist steepened around the 10-Year point on Monday, with 5s leading the richening witnessed, as yields there fell by ~2.5bp, while 30s cheapened by ~1.5bp.
• The front end didn't show much in the way of worry ahead of the impending round of 2-, 5- & 7-Year Tsy supply, due over the coming days, with FOMC hikes still front and centre when it comes to market pricing.
• Crude's rally supported breakevens, which were wider on the day, with the front end/belly leading that particular move, although that failed to spillover into the nominal space (as outlined above).
• There isn't anything in the way of meaningful tier 1 risk slated for Tuesday's Asia-Pac session. Tuesday's NY dealing will be headlined by 2-Year Tsy supply. Elsewhere, new home sales data, the latest Richmond Fed m'fing survey and conference board consumer confidence print will hit. We also note that the fiscal back and forth within the Democratic Party continues.