T-Notes Testing Friday's Lows

T-Notes testing Friday's late lows in early dealing this week, last -0-01+ at 133-12.

• To recap, cash Tsys saw the long end lead the cheapening during the final session of last week, selling off by ~6.5bp, with Thursday's rejection of the 200-DMA in 10-Year yields extending. Much of the talk on Friday focused on the recent richening going too far, too fast, the extent of the recent positioning washout and rich valuations vs. fundamentals. The rally in U.S. equities also helped pressure the space given the aforementioned factors, as did the proximity to Monday's double supply, which consists of 3- & 10-Year Notes.
• There is a lack of tier 1 headline risk slated for Asia-Pac hours, with the previously outlined Tsy supply and an address from Minneapolis Fed President Kashkari set to headline the local docket on Monday.