A Little Flatter Overnight

The pre-LNY feel was well and truly in play in the core FI space during Asia-Pac hours, with some light bull flattening witnessed in cash Tsys after 30s failed to make a meaningful break above 2.00% on Monday, with the pullback from intra-day cheaps seemingly resulting in some steepener unwinds after fresh multi-year highs for the 5-/30-Year yield spread. 30s sit ~2.0bp richer on the day at typing, while T-Notes have held to a 0-03 range in overnight trade, last -0-00+ at 136-21+, with limited flow apparent, as that contract operates on <75K of volume ahead of European hours.

• This week's coupon Tsy supply kicks off today, with 3-Year issuance due. Elsewhere, we will hear from Fed's Bullard, while NFIB small biz optimism and JOLTS job opening data is due.