Stabilisation Overnight

T-Notes last +0-00+ at 133-02, operating in a narrow 0-04 range in Asia. Cash Tsys trade little changed to ~1.0bp richer across the curve, regaining some poise in the wake of the cheapening seen since Friday's NFP print. Fed's Bullard ('22 voter) reiterated his view that the central bank should "press ahead with a plan to dial down its massive pandemic stimulus programme despite an abrupt slowdown in U.S. jobs growth last month," via an interview with the FT. Broader macro news flow was on the light side, while the only real market flow of note came in the form of a 4.0K screen lift in TY futures.

• To recap, T-Notes finished a little above their worst levels on Tuesday. This came as Tsys extended their post-NFP move after the long weekend, with 10s leading the way lower, cheapening by ~5bp come Tuesday's close. An uptick in corporate supply and this week's Tsy auction schedule provided background pressure, even with a lack of major headline flow apparent. A 3.5K block sale of UXY futures was witnessed during the NY morning (~$447K DV01 equivalent), adding to the early pressure. 3-Year Tsy supply stopped through WI by 0.3bp, with the cover ratio ticking lower, falling in line with the recent average, while dealer participation fell further below its own recent average.
• The NY session will bring the JOLTS job openings print and the release of the Fed's beige book. Wednesday will also bring 10-Year Tsy supply, while Fedspeak from Williams & Kaplan rounds off the local docket.