A Touch Firmer On Equity Block Sale Unease & Crude Dip

T-Notes last +0-01+ at 131-26, just shy of Asia highs (holding to a 0-06 range since the re-open, working away from late Friday lows on limited volume of ~93K), the cash curve has bull flattened, with 30s sitting ~2.5bp richer on the day. Continued focus on the knock-on impact of Friday's block sale frenzy in the equity space & talk of continued potential flow on that front (see earlier bullets for more details on that matter) provided modest support for core FI early this week, although there has been little in the way of broader market spill over, even as banks start to outline potential losses (which were seemingly driven by one, or maybe two, funds). A downtick for crude oil on the back of the refloating of the well-documented stranded ship in the Suez Canal provided another source of support for core global FI as we moved through overnight trade. Elsewhere, a 4,600 block buyer of FVM1 was seen ahead of European hours.

• As a reminder, underperformance in the 7- 10-Year sector of the cash curve was seen on Friday, with that area of the curve experiencing cheapening of ~4.0bp on the day come the close, with the uptick in the equity space overpowering any inference from mixed domestic data, allowing T-Notes to close at worst levels of the day.
• Dallas Fed m'fing activity data and Fedspeak from Waller headline locally on Monday. Domestic focus continues to fall on fiscal/infrastructure spending matters, with President Biden set to make an address re: the latter on Wednesday.