T-Notes Erase Earlier Gains, Cash Curve Bear Steepens

T-Notes have wiped out earlier gains and swung into a loss. The contract last trades -0-01+ at 131-23+, printing worst levels of the session and nearing Friday lows of 131-23. T-Notes remain on the back foot even as all three main e-mini contracts have pulled back from highs. Cash Tsy curve has bear steepened, with yields last seen 0.6-2.0bp higher. Eurodollar futures trade 0.25-1.0 tick lower through the reds.

• In case you missed it, Tsy Sec Yellen told ABC on Sunday that the risk of inflation is "small" and "manageable" and "if it materialises, we'll certainly monitor for it but we have tools to address it." Yellen added that the Biden administration has not yet decided whether to move ahead with wealth tax proposals backed by Senators Warren & Sanders.
• Politico reported that Biden is considering putting Gene Sperling in charge of overseeing the White House's Covid-19 relief plan. The nomination could be announced as soon as today.
• Focus in the U.S. turns to Empire M'fing as well as e-Month Bills & 6-Month Bills today. The FOMC is in its blackout period ahead of Wednesday's MonPol decision.