Holding Steading In Asia

T-Notes held to a very narrow 0-03 range overnight, last dealing -0-02 at 133-11 on volume of ~42K. Cash Tsys are unchanged to ~1.0bp cheaper across the curve. There has been little in the way of notable macro news flow during Asia-Pac hours, outside of a BBG report pointing to early discussions surrounding a Biden-led digital trade deal re: countering the influence of China in Asia (which would include the likes of Canada, Japan & Chile). Market flow has been dominated by the previously flagged ~31K screen lift of FFU1, with a total of ~46K lots trading at the same price in that contract overnight.

• To recap, cash Tsys were marginally cheaper on Monday, with benchmark yields across the cash Tsy curve closing 0.5-1.5bp higher. Yields meandered either side of unchanged, with London gains more than reversed ahead of the unconventional Treasury supply schedule. Decent enough demand at Monday's "double supply" helped the space away from cheapest levels during NY dealing. In terms of auction specifics, 3-Year supply tailed by 0.2bp, with the cover ratio little changed from prev. and vs. the recent average, as dealer takedown nudged higher but held at sub-average levels. 10s stopped through WI by 0.3bp, although the cover ratio ticked lower vs. prev., printing below the recent average as dealer takedown increased, moving closer to its own recent average.
• U.S. CPI and average earnings data are set to headline the domestic docket on Tuesday. Tuesday will also bring the latest round of 30-Year Tsy supply. Still, most of the short-term focus is being attached to Fed Chair Powell's semi-annual testimony on the Hill and the expected deluge of corporate issuance that may follow this week's Q2 earnings reports.