Indecisive Asia-Pac Session

There has been nothing in the way of Asia-Pac follow through in the wake of Monday's U.S. Tsy rally/curve flattening, which unwound Friday's cheapening/steepening. T-Notes were seemingly happy to operate within the confines of the range witnessed ahead of the NY close, leaving the contract -0-01+ at 132-07 at typing, on meagre volume of ~36K. Yields are little changed across the cash Tsy curve, with nothing in the way of notable headline flow witnessed overnight.

• To recap, T-Notes went out just shy of best levels on Monday as the cash Tsy curve bull flattened. 30s richened by ~5.5bp come the close, unwinding Friday's cheapening & steepening, with desks pointing to real money accounts driving the flattening ahead of month-/quarter-/half-year end. Desks noted that volume was below average, with a light corporate supply slate also feeding into the bid. Richmond Fed President Barkin ('21 voter) noted that the Fed has made "substantial further progress" toward its inflation goal, while stressing that he would wait until '22 re: making judgement on progress surrounding its dual mandate (while hinting that the Fed will likely "get there" on employment in "fairly short order." Elsewhere, GOP Senate Leader McConnell stressed that President Biden needs to follow through on his weekend comments surrounding the structuring of infrastructure legislation, with some background worry re: the swift passage of the legislation perhaps feeding into Monday's curve flattening. STIR flow headlined on the day, with 10K of the 4EU1 97.00 puts blocked at 0.005, which looked do represent fresh downside plays (further screen volume was seen. There was also a 5.0K block buyer of EDZ2/Z4, which came in the wake of a Morgan Stanley recommendation to enter steepeners in that particular spread over the weekend.
• Consumer confidence and another round of comments from Richmond Fed President Barkin will headline during NY hours.