A Touch Lower To Start The Week

A wider than expected Chinese trade surplus and the formal passage of some of U.S. President Biden's spending proposals through the House combine to apply some pressure to T-Notes early this week, with TYZ1 last -0-03 at 131-23+.

• E-minis a touch lower early on, with the weekend focus in that space falling on Tesla CEO Musk's Twitter poll, effectively asking if he should shed 10% of his equity holding in the company. The poll has answered in the affirmative, while he noted that he "will abide by the results of this poll, whichever way it goes." The NASDAQ 100 contract underperforms as a result.
• A quick reminder that Friday's rally came in the wake of a better than expected round of U.S. labour market data, with the data largely ignored, as positioning dynamics/FOMC repricing came to the fore (BoE repricing also continued to garner interest/result in cross-market reaction), while the latest bump higher in oil prices also had little impact. The curve bull flattened, with 2s 2.5bp richer and 30s 7.5bp richer come the bell.
• There isn't much in the way of tier 1 headline risk events slated for Asia-Pac hours on Monday, although the sixth plenary session of the 19th Communist Party of China Central Committee gets underway. A quick look to Monday's domestic docket reveals a raft of Fedspeak, including comments from Fed Chair Powell, Vice Chair Clarida, Bowman, Harker & Evans. Elsewhere, mid-month supply kicks off with 3-Year Notes.