On The Front Foot, With Archegos Fallout Eyed

Treasuries are on the front foot to start the week, with the curve seeing some modest bull flattening.

• 2-Yr yield is down 0.2bps at 0.1367%, 5-Yr is down 1.6bps at 0.8492%, 10-Yr is down 2.1bps at 1.6549%, and 30-Yr is down 2bps at 2.3577%.
• Jun 10-Yr futures (TY) up 2/32 at 131-26.5 (L: 131-20.5 / H: 131-31.5), respectable volumes (~360k as of 0630ET).
• The fallout from the Archegos hedge fund blow-up took center stage over the weekend (hitting some bank prime brokerages), though limited spillover into Tsys apart from a sharp fall from session highs this morning following Bunds, as wires reported Deutsche Bank was not as hard hit as some of its peers.
• Stock futs a little lower vs Friday's end-of-session jump.
• Also Sunday, WH Press Sec Psaki noted that Pres Biden will split his economic plan into two, laying out infrastructure proposals in Pittsburgh on Weds (details TBA), and other programs (incl health and child care) in April.
• A quiet schedule today. 1030ET sees Dallas Fed Manufacturing, while at 1100ET Fed Gov Waller delivers his first comments since joining the Board in December.
• In supply, $111B of 4-/8-week bills auctioned at 1130ET. NY Fed buys ~$8.825B of 2.25-4.5Y Tsys.