Marching To The Beat Of The Equity Drum

T-Notes have traded either side of unchanged but haven't threatened to close the opening gap lower from Friday's late NY highs. As a reminder, cash Tsys are closed until NY hours owing to the observance of Japanese & UK holidays, which limited broader activity, with just over 50K T-Notes changing hands as of typing. The early dip, facilitated by a bid in e-minis, was perhaps countered by the move lower in the Hang Seng/e-minis pulling back from best levels. It is worth noting that the weekend saw U.S. Tsy Secretary Yellen again play down the inflationary impulse stemming from President Biden's fiscal support schemes, once again highlighting the idea that the Fed has the capability and tools to deal with those sort of issues if they develop. Elsewhere, Iran sent out positive overtures re: the U.S. lifting sanctions, although the U.S. was quick to note that a deal is yet to be struck.

• Sydney trade was relatively narrow, leaving YM +0.5 & XM -0.5 at typing, with the curve holding steeper vs. settlement throughout Sydney trade, perhaps aided by the presence of the RBA purchasing ACGBs maturing in '25 to '28. On the semi front, SAFA is considering tapping its 2.75% May '30 select line bond.