Plenty Of Financial Issuance Evident

T-Notes trade -0-01 at 132-06+, operating around late NY levels.

• 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.
• The RBA meeting minutes and latest PBoC LPR fixing will hit during Asia-Pac hours, although there is little scope for anything in the way of broader macro knock on impact from these events.