Regional Holidays Make For Limited Trade In Asia

T-Notes stuck to a very narrow 0-02+ range in Asia-Pac hours, with a lack of headline flow compounded by the observance of holidays in both Japan & China (the former keeps cash Tsys closed until London hours). The contract last deals -0-01+ at 132-09, at lows of the day, on very limited volume of ~28K. This comes after a rally on Monday, but the contract ultimately finished a little shy of best levels.

• As a reminder, cash Tsy trade saw the 7- to 10-Year sector outperform on Monday, richening by ~3.0bp come Monday's bell, after some pre-NY cheapening on the back of a dip in Bunds in holiday-thinned conditions (UK, Japan & China were out on Monday) was more than reversed. A bid came into the space as cash trade opened in NY hours, with T-Notes subsequently testing last week's high on the back of a softer than expected ISM m'fing survey (which still topped 60.0, while the prices paid component nearly hit 90.0). Fedspeak from Powell, Williams & Barkin failed to break new ground. IG issuance may have provided some pressure on the longer end.
• Final durable goods and March's factory orders readings headline the local economic docket on Tuesday. Elsewhere, Fedspeak will come from Kaplan & Daly.