A Heavy Start

T-Notes trade heavily from the re-open, last -0-14 at 131-29 after the Senate passed an amended fiscal support bill, which will go back to the House this week, while the previously flagged Yemeni Houthi attacks on Saudi Aramco crude facilities have put a bid into oil (despite Saudi pointing to no impact on the facilities and crude production), adding a further layer of downward pressure in early trade this week.

• A reminder that Friday saw the belly of the cash curve cheapen on the day, while the wings richened, with 30s outperforming, richening by ~2.5bp come the bell. A firmer than expected round of U.S. labour market data triggered broad based selling in the wake of the release, with 10s touching fresh cycle cheaps on the move, as yields topped 1.62%. The space then recovered from worst levels of the day as desks flagged foreign real money a/c's and central banks as key players in 5-10 Year space during the move away from cheaps. Swap spreads tightened on the day, with the move extending as FDIC Chair McWilliams noted that it doesn't seem that banking agencies will need to extend the SLR relief currently prescribed for U.S. Tsys.
• There is a lack of tier 1 risk slated for Asia-Pac hours, with the earlier flagged weekend developments set to set the tone early on this week, while broader headline and market flow will be eyed. As a side note, Chinese export data for February hit over the weekend, and was much stronger than expected (working off the extremely low initial COVID outbreak base in Y/Y terms), allowing Jan-Feb export growth to come in comfortably above broader expectations.