Steepener Flow & ACGB Supply Weigh

T-Notes moved lower overnight, amid a lack of notable headline flow, with Asia happy to follow on from price action in NY. The impending auction cycle was eyed, with Tuesday's 2-Year supply easily absorbed. T-Notes -0-07+ at 139-03, with yields sitting 1.0-2.3bp cheaper across the curve. 7s and 10s underperform. Steepener flow via a US/WN futures block and a TYV0 138.00/TYX0 137.50 put diagonal provided the highlights flow wise.

• The well received Aussie bond syndication may have also provided some pressure.
• To recap, the space finished cheaper on Tuesday, although yields were off extremes as the curve steepened. Local data was mixed, with consumer confidence data registering fresh multi-year lows, while Richmond Fed m'fing and the latest round of housing data was solid to strong. Volume was supported by roll activity. The latest round of 2-Year Note supply stopped through WI by 0.3bp, while the cover ratio topped the recent averages as dealer takedown slid and indirect participation jumped. Corporate/sovereign $ supply was also noted.
• Durable goods data, 5-Year supply and Fedpseak from Barkin all due on Wednesday, although focus is squarely on Fed Chair Powell's address, slated for Thursday.