Bid On Disappointing Tech Guidance & Weak E-Minis

TYM2 bid at the re-open as e-minis pull lower, last dealing +0-04 at 119-22+. Disappointing guidance from tech name Snapchat is a probable cause here, with NASDAQ 100 e-minis shedding over 1.5% vs. settlement as of typing, with the S&P 500 contract ~1.0% softer. Note that TYM2 had started to work away from session lows into the NY close, perhaps linked to comments from Russian Foreign Minister Lavrov as he pointed towards the expedition of deeper Sino-Russian ties, with any Western ideas re: re-establishing ties requiring Russian thought, based upon need.

• To recap, hawkish ECB speak from President Lagarde, hope surrounding the potential rollback of tariffs from the Trump-era Sino-U.S. trade war (despite some mixed messaging from the U.S. surrounding Taiwan), Chinese fiscal stimulus and a bounce in U.S. equities all fed into pressure for U.S. Tsys on Monday, which allowed the curve to bear steepen, with the major benchmarks cheapening by 4-8bp, as 20s provided the cheapest point on the curve.
• Flow was mixed on the day. USU2 124.00 puts were lifted in size during the NY session, highlighting on the downside, while lifts in TYN2 120.50/122.00 call spreads and TYN2 121.00 calls provided some bullish offset.
• Fedspeak from Kansas City Fed President George (’22 voter) headlines during Asia-Pac hours. NY hours will bring the release of the latest batch of flash PMIs, new home sales data and the latest Richmond Fed m’fing survey. We will also get Fedspeak from Chair Powell & 2-Year Tsy supply.