Unwind

T-Notes unchanged at 132-08+ at typing after going out just shy of best levels on Monday.

• To recap, the cash Tsy curve bull flattened, as 30s richened by ~5.5bp come the close, unwinding Friday's cheapening & steepening, with desks pointing to real money accounts driving the flattening ahead of month-/quarter-/half-year end. Desks noted that volume was below average, with a light corporate supply slate also feeding into the bid.
• Richmond Fed President Barkin ('21 voter) noted that the Fed has made "substantial further progress" toward its inflation goal, while stressing that he would wait until '22 re: making judgement on progress surrounding its dual mandate (while hinting that the Fed will likely "get there" on employment in "fairly short order."
• Elsewhere, GOP Senate Leader McConnell stressed that President Biden needs to follow through on his weekend comments surrounding the structuring of infrastructure legislation, with some background worry re: the swift passage of the legislation perhaps feeding into Monday's curve flattening.
• There isn't really anything in the way of broader tier 1 risk events slated for Asia-Pac hours on Tuesday. Meanwhile, consumer confidence and another round of comments from Richmond Fed President Barkin headline during NY hours.