U.S. Tsys Off Post-NFP Highs

T-Notes print -0-03+ at 132-03, hovering just above session lows as Tsys trade a touch softer across the board after a peculiar pop through Friday's highs for longer dated Tsy futures around the re-open was quickly reversed. Cash Tsys run 0.5 to 2.0bp cheaper across the curve, with light bear flattening in play. Weekend focus fell on the G7's agreement re: the broader implementation of a minimum corporate tax structure, as they look to fight tax evasion, notably within the big tech space, while a BBG interview with U.S. Tsy Secretary Yellen is also garnering attention. Yellen noted that U.S. President Biden should push on with his $4tn spending schemes, even if they may result in inflation spill over into '22 and higher interest rate settings from the Fed. Elsewhere on the U.S. fiscal front, the weekend saw U.S. Energy Secretary Granholm tell CNN that the U.S. House will start the mark-up of an infrastructure bill on Wednesday, with or without Republican support.

• JGB futures have held to a narrow range, +14 ticks vs. settlement at typing, peaking through overnight highs. Bonds in the belly of the JGB curve run 1.0-2.0bp firmer, while the wings lag, with the super long end likely limited by the previously flagged proximity to tomorrow's 30-Year JGB supply. There has been little to note on the domestic front, outside of a RTRS report which flagged the following: "Japan will highlight the need for fiscal reform even as it keeps up stimulus to combat the blow from the coronavirus pandemic, a draft of its economic and fiscal blueprint reviewed by Reuters showed. The government will also unveil plans to promote green and digital investment by drawing in private demand, as part of efforts to revitalise the world's third largest economy, according to the draft of this year's blueprint."
• Aussie bond futures have failed to work their way out of the ranges established early on in Sydney trade, with YM +1.5 and XM +6.0. The latter has struggled to extend meaningfully through the recent highs, but bulls seemingly remain in control there. Headline flow remains light, with a decent pipeline of A$ issuance building (particular focus has fallen on sustainability/social bonds, with onshore and offshore names active there).