A Touch Cheaper As Liquidity Returns

10s led the way lower in U.S. cash Tsy trade during Asia-Pac hours as the space re-opened after the elongated weekend, with that benchmark last printing ~2.0bp cheaper vs. Friday's closing levels. T-Notes last -0-06 at 131-24, 0-02 off lows, after pockets of selling pressured the contract to worst levels of the day. Headline flow remains light, with no notable surprises in today's USD/CNY mid-point fixing. There was perhaps an element of the latest uptick in oil spilling over into Tsys, as Brent futures topped $70.00

• Monday provided a very narrow, holiday-shortened session for futures after Friday's month-end driven movements. A mere ~150K T-notes changed hands during Monday's session, with weekend focus falling on verbal guidance from the Chinese policymaking sphere re: the recent CNY appreciation, before the PBoC stepped in, hiking the foreign exchange reserve requirement ratio by 2ppt (to 7% from 5%), effectively locking up ~$20bn of liquidity in the FX market, per estimates from an ex-SAFE official.
• The ISM m'fing survey headlines the local economic docket on Tuesday. Elsewhere, Fedspeak from Brainard & Quarles is due.