Tight Overnight

Much of the weekend's headline flow focused on goings on in Afghanistan, with the U.S. conducting a surgical strike against some of the plotters of the recent attack on Kabul airport, in addition to moving to foil another terror act in the city. Elsewhere, RTRS sources pointed to an intercepted missile attack, which fired on Kabul airport early on Monday morning.

• Incremental support has spilled over from Friday's post-Powell dealing into Asia-Pac trade, with T-Notes holding to a narrow 0-03 range thus far, last +0-01+ at 133-30 after a couple of tests of Friday's late NY high, but there was nothing in the way of a notable break, despite brief and shallow showings above. Cash Tsys trade little changed to ~0.5bp richer across the curve. There hasn't been much in the way of meaningful headlines/market flow observed thus far. As a reminder, TYU1 will see first notice on Tuesday.
• To recap, Tsys were 2.5-5.0bp richer across the curve come the close on Friday, with the belly leading the rally in the wake of Fed Chair Powell's Jackson Hole comments. Powell managed to placate some of the hawkish tones that had come from regional Fed Presidents in the lead up to his address, with Vice Chair Clarida managing to reinforce Powell's balanced message i.e. the tapering announcement/moves could come this year, but there is no rush evident. Fed Governor Waller followed up with his own brand of hawkish rhetoric.