Retail Trade Matters Still eyed

Focus continues to fall on the dealings/knock on impact of the Wall Street Bets retail trader group in the U.S., with worry re: their ability to create volatility evident at the Asia-Pac re-open, as markets traded defensively (precious metals garnered the most attention given the WSB focus on SLV shorts/silver). This added to a sense of caution that started with the softer than expected official Chinese PMI data releases from the weekend (with a miss for the Chinese Caixin m'fing PMI also witnessed during Monday trade).

• U.S. Tsys looked through the broader noise, with bulls unable/unwilling to force an extension after Friday's late uptick. A sense of calm then came to the fore, albeit with nothing in the way of notable headline flow, as e-minis more than pared their losses and the USD surrendered its early gains. T-Notes last print +0-03+, at 137-04+, while cash trade has seen some bear steepening, with 30s running ~2.0bp cheaper on the day. T-Note volume is healthy enough, nearing 115K, although there has been little in the way of standout flow observed during Asia-Pac hours.
• As a reminder, Friday saw the Tsy curve steepen, although T-Notes pared losses into the close of electronic trade, with some focus on caution from Pfizer re: future variants of COVID being able to negate existing vaccines. This came after early NY headlines re: J&J's one-shot vaccine weren't as positive as expected, although some of the sub-notes provided broader reassurance re: the general efficacy of the vaccine, and were more positive overall. Impetus from the EGB/Gilt space had provided some pressure ahead of NY hours.
• The latest ISM m'fing survey, along with Fedspeak from Kaplan, Bostic & Kashakari headlines Monday's local docket.