Fedspeak & Supply Due On Wednesday

A muted re-open for T-Notes, with TYZ1 operating a touch above its late NY lows, last dealing -0-01+ at 130-16+.

• Cash Tsys were richer out to 5s on Tuesday, with 2s outperforming, richening by 3bp come the bell. Longer dated paper was cheaper, with 30-Year yields running 5bp higher on the day, resulting in twist steepening of the curve. A large TU/TY steepener block was seen in the NY morning (+20,790/-10,687), aiding the broader theme, while a conditional steepener block was seen in options via TYZ1 131 puts vs. USZ1 157.00 puts (-8,576/+7,500)
• Fedspeak from the likes of Governors Waller & Bowman failed to result in any notable market reaction.
• The fiscal back and forth between Democrats continues on the Hill, with key Senator Manchin continuing to hold discussions with progressives.
• There isn't much in the way of tier 1 risk events slated for the Asia-Pac session, while Wednesday's NY session will be headlined by another raft of Fedspeak and 20-Year Tsy supply.