Mixed Start To A Busy Week

2021 trading has begun in mixed fashion, with weakness in Asia-Pac followed by a sharp rebound in the European morning. All in all, a little weaker, with bear steepening in the curve.

• The 2-Yr yield is unchanged at 0.1211%, 5-Yr is up 0.5bps at 0.3655%, 10-Yr is up 1.7bps at 0.9298%, and 30-Yr is up 1.8bps at 1.6629%.
• Mar 10-Yr futures (TY) down 3.5/32 at 137-31 (L: 137-26.5 / H: 138-02) on decent volume (275k).
• Not much rhyme or reason to price action, with Tsy rebound coming alongside rising stocks and a weaker dollar (DXY index hitting a fresh post-2018 low).
• Fairly limited schedule to start what is going to be a busy week, with Georgia Senate elections Tuesday, and Fed minutes Wednesday among the areas of interest.
• Of note are apparently increasing expectations that the Democrats could win both seats, a scenario whose odds are now even per bookmakers.
• Fed speakers today include Chicago's Evans (1000ET), Atlanta's Bostic (separately also at 1000ET), and Cleveland's Mester (1215ET and 1800ET).
• Final Dec Manuf PMI at 0945ET, Nov Construction spending at 1000ET are the only data points.
• Supply: $105B of 13-/26-week bill sale at 1130ET. NY Fed buys ~$8.825B of 2.25Y-4.5Y Tsys.