Off To A Tight Start

A muted start for T-Notes, last +0-02 at 134-06, operating a touch above Friday's late NY lows early this week.

• The weekend saw most of the headline focus continue to fall on the situation in Afghanistan, which is seemingly hampering favourability metrics re: U.S. President Biden. Meanwhile, on home shores, a BBG source report suggested that "U.S. Treasury Secretary Janet Yellen has told senior White House advisers that she supports reappointing Jerome Powell as Federal Reserve chair."
• To recap, U.S. Tsys finished Friday's session little changed across the curve, going out flat to ~1.0bp cheaper on the day, with 10s representing the weakest point on the curve. Dallas Fed President (Hawk, '23 voter) introduced a more caveated view surrounding tapering, at least on his part, with his focus seemingly falling on the evolution of the Delta COVID strain in the U.S.
• Elsewhere, late on Friday saw confirmation that the annual Jackson Hole symposium will shift to a virtual format. The Kansas City Fed noted that "due to the recently elevated COVID-19 health risk level in Teton County, Wyo., the Federal Reserve Bank of Kansas City will host its 2021 Economic Policy Symposium, "Macroeconomic Policy in an Uneven Economy," virtually on Friday, Aug. 27."
• Flash PMI data from across the globe may set the tone ahead of Monday's NY session. On top of the U.S. flash PMI data we will also see the latest Chicago Fed national activity index reading and existing home sales data.