Bull Flattening On Evergrande Spillover

Treasuries have gained steadily in overnight trade to start the week, with equities weakening and the dollar on the front foot.

• Yields opened European trading lower (no cash trading in Asia-Pac with Japan on holiday) and have continued lower, with bull flattening in the curve.
• The 2-Yr yield is down 0.2bps at 0.2198%, 5-Yr is down 2bps at 0.8405%, 10-Yr is down 3.2bps at 1.3294%, and 30-Yr is down 3.9bps at 1.8598%.
• Dec 10-Yr futures (TY) up 8.5/32 at 133-1.5 (L: 132-24 / H: 133-03)
• Concerns over spillover from real estate giant China Evergrande's woes have driven the risk-off tone. And of course there's some attention on Wednesday's Fed decision, particularly with possible movement in the Dot Plot (MNI's preview will be out later today).
• And worth noting it's a big week for Congress, with government funding, the debt limit, and multi-trillion dollar fiscal packages in the balance in the coming days.
• A very quiet session in terms of scheduled data /events. 1000ET sees the session's only data: NAHB Housing Market Index. Supply today: $90B in 13-/26-week bills selling at 1130ET.
• NY Fed buys ~$3.225B of 7-10Y Tsys.