T-Notes A Touch Shy Of Monday Highs

T-Notes trade a touch shy of their late NY peak after the re-open, +0-01 at 130-22, after closing little changed on Monday, as the contract stuck comfortably within the confines of Friday's range.

• The curve steepened on Monday, with yields running little changed out to 10s come the close, while 30s cheapened by ~2.5bp on the day.
• Factors weighing on the space during the NY morning included the burden of US$ IG issuance and a fresh record high for domestic equities, although a pullback in stocks allowed the space to recover from cheapest levels of the session. An uptick in the Treasury's Q4 borrowing estimate (which rose by $312bn) applied a brief round of pressure late in the day, before the rally resumed.
• Desks pointed to two-way flow ahead of the impending risk events (FOMC on Wednesday and NFPs on Friday).
• The RBA decision provides the headline event risk during Tuesday's Asia-Pac session, although the domestic U.S. docket looks rather empty on Tuesday, which will allow participants to zero in on the upcoming FOMC decision.