Struggling For Definitive Traction Early This Week

TYU2 currently prints -0-01+ at 117-09+, while the major cash Tsy benchmarks sit within -/+0.5bp vs. their respective Friday closing levels shortly after the re-open. Tsy futures initially drew light support from a heavy start for crude oil markets (with talks of price caps on Russian oil and the impending restart of indirect U.S.-Iran nuclear talks confirmed), although the move in the former was fleeting, with all of the major Tsy futures benchmarks now back below their respective Friday settlement levels, while crude oil futures are off early session lows.

• E-mini futures are lower, likely on the back of fresh focus re: western sanctions on Russia and the apparent forced default of Russia (on the back of missed payments covering foreign currency denominated bonds), in addition to the weakness in crude.
• TYU2 has respected Friday’s range thus far.