Overcoming Vaccine Induced Vol

Rates and equities held moderate gains after the bell Monday, off early lows following negative vaccine related headlines for Astrazeneca. Italy, Germany and Spain suspended use earlier, now awaiting word from France (expected to make announcement later). Latest headline from Germany weighing on broader equities:

• Rates and equities rebounded late morning after: EMA REITERATES BENEFITS ASTRAZENECA VACCINE OUTWEIGH RISKS, Bbg
• Otherwise, fairly sedate session, two-way positioning on net as markets await the next FOMC policy annc on Wednesday. Deal-tied hedging in the mix, better buying upside calls as well.
• Some trepidation ahead Tuesday's 20Y auction re-open: If last week's auctions are any indicator, there is some trepidation over how well Tuesday's US Tsy $24B 20Y bond auction re-open will be received. WI currently running 2.280% / 2.275%.
• This compares to the Feb 17 auction when Treasuries gapped lower after WEAK US Tsy $27B 20Y bond auction (912810SW9) draws 1.920% vs. 1.897% WI, bid/cover 2.15% (2.28% previous).
• The 2-Yr yield is up 0.4bps at 0.151%, 5-Yr is down 1bps at 0.8305%, 10-Yr is down 1.6bps at 1.609%, and 30-Yr is down 0.5bps at 2.3722%.