T-Notes Look Through Friday's Lows

Friday's weakness extends in early futures trade, with T-Notes last printing -0-05 at 135-09+. Little in the way of meaningful tier 1 news flow crossed at the weekend, although there were positive (at least at the margin) headlines re: the efficacy of the Pfizer vaccine. The early move likely represents regional reaction to Friday's weakness, with T-Notes through last week's lows. We should also flag that late Friday saw J.P.Morgan nudge their 10-Year Tsy yield, as well as 5- & 10-Year breakeven forecasts for '21 higher.

• As a reminder, Friday trade saw 30s cheapen by a little over 5.0bp on the day, with bear steepening in play, aided by Democratic Senate leader Schumer pointing to the passage of the fiscal support package by mid-March. Longer dated U.S. Tsy yields tagged fresh cycle highs, with longer dated U.S. real yields bid (30-Year real yields punched and closed above 0.00% for the first time since June '20).
• The vaccine distribution/relative U.S. economic growth themes also played a part.
• There is nothing in the way of tier 1 risk slated for Asia-Pac hours, leaving regional reaction to Friday's market moves at the fore, as participants away input from broader flow/headline matters.