Post-Auction Drift Lower

T-Notes edged lower overnight, with the contract last -0-06+ at 139-08+,
as the curve steepens. The space took the lead from broader market
flows, as several strategists pointed to long 10-Year ACGB vs. short 10-
Year U.S. Tsys expressions, which they believe will perform when the
pressure of today's ACGB issuance subsides.

• A reminder that T-Notes and 10-Year yields continue to respect their
  recent ranges, with the uptick in equity markets, COVID-19 vaccine
  optimism and soft 2- & 5-Year supply providing headwinds for the
  space as we moved through NY hours on Monday, leaving T-Notes at
  worst levels come the NY close, as the cash curve steepened. In
  terms of auction specifics, record low clearing yields and auction
  sizes saw tails of under 1.0bp vs. WI for both 2- & 5-Year supply, with
  cover ratios below recent avgs., while dealer takedown topped recent avgs.
• 7-Year Note & 2-Year FRN issuance due today, as well as consumer
  confidence data.