Just Shy Of Friday Peaks

T-Notes trade marginally below late Friday levels, last -0-01+ at 132-05.

• Weekend focus has fallen on the G7's agreement re: the broader implementation of a minimum corporate tax structure, as they look to fight tax evasion, notably within the big tech space, while a BBG interview with U.S. Tsy Secretary Yellen is also garnering attention. Yellen noted that U.S. President Biden should push on with his $4tn spending schemes, even if they may result in inflation spill over into '22 and higher interest rate settings from the Fed. She suggested that "if we ended up with a slightly higher interest rate environment it would actually be a plus for society's point of view and the Fed's point of view."
• As a reminder, Friday saw the 10- to 20-Year zone of the curve lead the rally in the wake of a disappointing headline NFP print, with that zone of the curve firming by ~7.5bp. Questions surrounding perceptions re: the Fed's taper schedule (in the wake of a second consecutive softer than expected NFP print) drove the richening, with signs of short cover evident into the weekend. A lack of subsequent catalysts allowed rates to finish Friday at/around richest levels.
• Chinese trade data headlines the regional Asia-Pac economic docket on Monday, while U.S. fiscal developments will likely garner most of the attention during Monday's U.S. session, with the Fed now in its pre-meeting blackout period & given the lack of meaningful domestic data.