Flattening Unwound At Month-End

T-Notes re-open around late NY levels after the pullback witnessed into the close, last dealing -0-05+ at 132-10+.

• As a reminder, Tsys unwound their gains/flattening over the late NY month-end period, with the major cash Tsy benchmarks hitting the bell around unchanged levels.
• Local data releases included a mixed ADP print (beat on this month's reading, with the prior month's reading seeing a ~92K downward revision), while the rate of expansion witnessed in the MNI Chicago PMI slowed at a quicker clip than was expected.
• 2x TU/FV flattener blocks were seen during the NY morning, helping the general flattening trajectory that was evident ahead of month-end flows. There was also a 10K block buy in the TYU1 135.00/136.00 call spread, with the 136.00 strike equating to a drop to ~1.00% in yield terms. Short end activity once again caught the eye, with the increased round of EDZ2/Z4 activity continuing for a third day. A reminder that Morgan Stanley issued a recommendation to initiate EDZ2/Z4 steepeners at 104.0 after hours on Friday, with the spread operating in a 101.5-107.0 range so far this week, ending NY trade at 105.5 (after settling at 102.5) with ~86K lots trading since Sunday's Asia-Pac open.
• Fed reverse repo facility activity also garnered attention, surging to $992bn at quarter-end.
• Global PMI data will be front and centre ahead of Thursday's NY session, although a fair chunk of the releases represent final prints. Looking ahead to NY hours, the local docket will be headlined by the latest ISM m'fing survey and weekly jobless claims data.