Asia Assesses

A narrow re-open for futures, with T-Notes last +0-00+ at 138-04+.

• The Tsy curve was subjected to some twist steepening pressure on Monday, although the long end recovered from intraday cheaps as defensive flows became evident across broader markets. The mixture of the COVID situation in the U.S. & Europe, continued political angst in the U.S. and OPEC+ squabbling ultimately provided support after a sharp move lower in early NY trade, which may have been linked to the return of IG issuance after the Christmas/NY hiatus with broader selling flow seen in the futures space. T-Notes quickly unwound the move finishing around best levels of the day as equities weakened during the first session '21 (mostly driven by the aforementioned factors).
• Elsewhere, 10-Year breakevens printed above 2.00% for the first time since 2018, finishing (marginally) above that level on a closing basis.
• Looking ahead, Tuesday's Senate run-off in Georgia provides the immediate focal point, with a raft of Fedspeak (including the minutes of the December FOMC meeting), ISM surveys & the December NFP report due in the coming days.