A Limited Start After Friday's Modest Cheapening

T-Notes print a touch lower at the re-open, last -0-02+ at 132-11+, with recent headlines from EU Commission chief Von Der Leyen pointing to U.S. tourists being able to visit the EU in the summer of '21.

• Headline flow was relatively light over the weekend, with most of the focus falling on the world looking to help India through its COVID outbreak and continued insistence on the need for targeted fiscal stimulus (and resistance to the use of the reconciliation measure to pass any linked legislation) on the part of moderate U.S. Democratic Senator Manchin.
• As a reminder, T-Notes traded a little softer on Friday, in what proved to be an "inside day" for the contract. Light underperformance in the belly of the cash curve was witnessed, with the 5- to 7-Year sector of the curve cheapening by 2.5bp come the bell, as yields finished a touch higher across the Tsy complex. Fresh record highs for the S&P 500 kept a lid on any rallies, as did generally in line to firmer than expected flash PMI data from across the globe and strong domestic new home sales data. A late 2.0K block buy of WNM1 helped ensure that the belly underperformed and knocked the 5-/30-Year cash curve to flattest levels of the day. Elsewhere, late Friday saw U.S. health agencies lift the pause on the use of Johnson & Johnson's COVID vaccine.
• There is little of note on the regional Asia-Pac docket on Monday, with focus turning to a condensed pre-FOMC supply schedule from the Treasury. Monday's issuance is headlined by the 2- & 5-Year Tsy auctions. Preliminary U.S. durable goods readings are also due to be released on Monday.