A Narrow Start To The Week

T-Notes flat at the re-open, last dealing +0-00+ at 132-20+.

• Comments from Fed's George (non-voter in '21) hit during the NY-Asia crossover, as she noted that although current factors boosting inflation are likely to be transitory, she cannot dismiss today's pricing signals. On broader monetary policy matters she stressed that a flexible approach has served the central bank well and that it should maintain highly accommodative policy for some time. Comments from George are still filtering out.
• To recap, Tsys stuck to a narrow range on Monday, with little in the way of meaningful macro headline flow evident (European liquidity was thinned by the Pentecost holiday) and a lack of tier 1 economic releases slated. Nonetheless, the curve flattened at the margin as the long end richened by ~2.0bp, with T-Notes finishing a touch shy of best levels. Once again, activity was boosted by quarterly roll flow. On the corporate supply front, AstraZeneca mandated for multi-tranche issuance, including 30-Year paper.
• There is nothing in the way of tier 1 headline risk slated for Asia-Pac hours. Tuesday's U.S. economic docket will be headlined by consumer confidence, Richmond Fed m'fing & new home sales data, which will be supplemented by Fedspeak from Quarles, Barkin & Evans, in addition to 2-Year Tsy supply.