Light Twist Steepening

Tsys have turned away from cheapest levels of the day, aided by some fresh weakness in e-minis over the last couple of hours or so, leaving the major cash benchmarks running 1bp richer to 1bp cheaper as the curve twist steepens (adding to the steepening seen at the back end of last week). TY futures sit -0-04+, 0-02 off the peak of their 0-06 range, sticking within the confines of Friday’s session boundaries. Note that both WN & US futures had a look through their Friday lows overnight, although the moves were limited.

• Chinese deflation/stimulus discussions garnered the most attention during Asia hours, while the fallout from Tsy Secretary Yellen’s visit to China dominated weekend headline flow. The latter wasn’t particularly market moving, with the optics surrounding the visit the major focus, as opposed to any meaningful progress in Sino-U.S. Relations.
• The latest raft of Fedspeak (Barr, Mester, Bostic & Daly) headlines the domestic docket today.