No Holiday For The Long End

Tsy futures are flat vs Monday's holiday-thinned session after coming off overnight highs, but well below levels seen pre-holiday weekend, with bear steepening in the cash curve as the global "reflation trade" continues.

• Modest gains overnight looked of a corrective nature and indeed have proven short-lived. TYs now trading near the lows. Mar 10-Yr futures (TY) down 12/32 vs Friday at 136-05.5 (L: 136-02 / H: 136-15).
• Cash curve steeper, long end pushing higher (5s30s post-2015 high etc etc): 2-Yr yield is up 0.6bps at 0.115%, 5-Yr is up 2.6bps at 0.5174%, 10-Yr is up 4.5bps at 1.2535%, and 30-Yr is up 5.3bps at 2.0615%.
• A heavy Fed speaker slate: Gov Bowman (1110ET), KC Fed's George (1230ET), Dallas' Kaplan (1300ET), SF's Daly (1500ET).
• Conversely, thin on data: Feb Empire manufacturing at 0830ET; Dec TICs at 1600ET.
• In supply, $105bn of 13-/26-week bills sell at 1130ET, while $60B of 42-/119-day bills sell at 1300ET. NY Fed buys ~$7.750B of 20Y-30Y Tsys.