Flat Start

T-Notes little changed at the re-open last +0-03 at 131-30+, hovering around Friday's late NY levels.

• The weekend saw U.S. President Biden stress that he doesn't plan to veto the bipartisan infrastructure bill if it is presented without a reconciliation package, despite previous accusations to the contrary from the GOP in the wake of some of Biden's comments on Thursday
• To recap, T-Notes recovered from worst levels into Friday's close, but were still cheaper on the day. The cash Tsy curve ran steepe, with the short end little changed, while 5s cheapened by ~5.0bp come the bell, with desks pointing to rate locking ahead of U.S. corporate supply, impending long end supply out of EUR and flattener unwinds as potential drivers as we moved into the weekend. Longer dated U.S. yields registered their highest levels of the week, before finishing a little shy of extremes. Flow was dominated by the short-end with a 20K block buyer of the EDM2/M4 spread seen. Friday's Fedpseak failed to add much in the way of new information, while May's PCE inflation data was roughly in line with broader expectations.
• Monday's Asia-Pac docket is relatively limited, while the latest round of Fedspeak will headline the local docket in NY hours. Still, participants are already looking to Friday's NFP release.