Cheapening Continues After Labor Day

T-Notes operating around late NY levels after finishing a little above Tuesday's low come the bell, last dealing unchanged at 133-00.

• To recap, Tsys extended their post-NFP move after the long weekend, with 10s leading the way lower, cheapening by ~5bp come Tuesday's close. An uptick in corporate supply and this week's Tsy auction schedule provided background pressure, even with a lack of major headline flow apparent.
• A 3.5K block sale of UXY futures was witnessed during the NY morning (~$447K DV01 equivalent), adding to the early pressure.
• 3-Year Tsy supply stopped through WI by 0.3bp, with the cover ratio ticking lower, falling in line with the recent average, while dealer participation fell further below its own recent average.
• There is a lack of meaningful tier 1 risk events scheduled for Asia-Pac hours, while the NY session will bring JOLTS job openings and the release of the Fed's beige book. Wednesday will also bring 10-Year Tsy supply. Fedspeak from Williams & Kaplan rounds off the local docket.