Marginally Cheaper In Asia

Some pressure in the Aussie bond space and Chinese President Xi's focus on a multilateral global environment ultimately pressured core global FI markets during Asia-Pac hours, although there was little in the way of outright fresh news apparent re: either of those particular matters, limiting the scope of and participation in the moves.

• T-Notes -0-02 at 132-05+ at typing, 0-01+ off the lows and within the confines of a 0-05 range since the re-open, operating on modest volume < 80K. Cash Tsys run less than 1.0bp cheaper across the curve, with the two aforementioned matters providing the focal points during Asia-Pac hours.
• As a reminder, the cash Tsy curve twist steepened on Monday, with paper out to 5-Years marginally richer, while the remainder of the curve lost ground, with 30s cheapening by ~3.0bp come the close. Cross market pressure from Bunds played at least some part in the move (with plenty of sell-side recommendations re: selling Bunds ahead of Thursday's ECB meeting evident), while softer U.S. equities and hedging related flow surrounding U.S. financial issuance provided some cushion, with the latter also driving tightening in longer dated U.S. swap spreads (further financial issuance is expected during the remainder of the week). These supportive factors allowed the space to correct from early NY cheaps.
• Tuesday presents another near non-existent local docket, which will leave broader themes and headline flow in the driving seat.