Light Pressure To Start The Week

T-Notes pressured early this week, -0-03 at 136-19, although remaining within the confines of Friday's range.

• Weekend comments from U.S. Treasury Secretary Yellen expressed hope that the U.S. can return to full employment during '22 if it enacts a robust enough round of stimulus, which may be adding pressure to the space. Elsewhere, on a more defensive note, late Friday saw U.S. Secretary of State Blinken tell China's top diplomat Yang that the U.S. will work with its allies to hold Beijing accountable for threatening regional stability. The U.S. also plans to make a stand for human rights.
• Friday saw some twist steepening of the cash Tsy curve, with the weaker than expected NFP print (which was accompanied by broader based disappointment, outside of the AHE print) supporting the shorter end on anchored Fed expectations, while the longer end was subjected to pressure on the back of the fiscal dynamic that a softer than expected run of labour market data may drive. Spill over from here may also be applying pressure in early trade this week. Still, Friday saw U.S. President Biden note that the round of fiscal support that is currently slated is unlikely to include a minimum wage hike when it is passed.
• Long end swap spread widening also helped underpin the general steepening theme.
• Monday's Asia-Pac docket is limited, with focus already turning to this week's round of U.S. 3-, 10- & 30-Year Tsy supply.