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Price Signal Summary - USDJPY Dips Considered Corrective


SONIA Call Ladder Buyer


Mixed Earlier Trades


Driven by two Ps: Pill and PMIs


Energy Gaining

A Touch Firmer In Asia


A lack of meaningful headlines and nothing in the way of notable broader market flow has allowed T-Notes to trade within the confines of a 0-02+ range overnight, with the contract last dealing +0-01+ at 132-05. Cash Tsys print unchanged to 1.5bp richer across the curve, with some light bull flattening evident. We should highlight that the NY-Asia crossover saw GOP Senator Capito stress that the GOP is not going to present a further counter-offer to President Biden's fiscal spending proposals ahead of another meeting on Tuesday.

  • As a reminder, T-Notes stuck to a very narrow trading band on Monday, going out around the middle of the daily range, consolidating the bulk of Friday's post-NFP rally. The broader Tsy space recovered from cheapest levels, aided by a downtick in the U.S. equity space (with some pointing to the G7 corporate tax accord & Tsy Sec Yellen's weekend comments as a headwind for the latter). Elsewhere, a lack of movement on the fiscal front and a subdued news backdrop left most looking to this week's Tsy auction cycle and corporate issuance slate. That left benchmarks across the curve 1.0-2.0bp cheaper come the bell, with 20s providing the weakest point on the curve. Still, the major rounds of market flow were focused on the belly of the curve, with a total of 20,965 FVU1 lifted on block throughout the NY session. Elsewhere, TY vol sellers continued to show their hands (with growing calls for short-term vol compression among the sell-side).
  • Tuesday's focus will fall on 3-Year Tsy supply, and, to a lesser extent, NFIB small business optimism and JOLTS job openings data.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |