summarise in 200 characters:

Treasuries sold off today, led by the belly, reversing most of Friday’s move, with the front end still richer, but the back end cheaper to pre-NFP levels. Lack of escalation in the middle east over the weekend, corporate supply, the upcoming refunding, as well as most likely a positioning exacerbated move on Friday allowed for the retracement from 4.5% 10s.SLOOS failed to stabilize the market, as overall conditions loosened marginally, albeit still at tight levels. Flows saw RM buying 2s, 10s, two ways in 3s and 30s, selling 5s and 20s, while HFs sold 20s. Tomorrow market gets Trade Balance and Consumer Credit. Market expects Fed officials to repeat the Fed is on hold and not even thinking about cutting rates. Supply kicks off with $48bb 3yrs, followed by $40bb 10yrs Wednesday, and $24bb 30yrs Thursday.

Asia HG had a morning movement that shocked most of the clients after the big rates rally on Friday. High beta names anywhere from 10-20bps tighter, with most of the actions being street driven. Duration also been well bid especially in TMT sector, market is anywhere from 7-10bps tighter. Low beta benchmarks were relative more calm with spreads unch-2bps tighter. 

Financials/HG property side also saw some action with VNKRLE 3-6pts higher in the front ends and long ends 12pts higher. Market had PB/FM buyers in the morning and bonds were trading as much as +9pts at one point before market saw some RM and FM profit taking. There was a closed door meeting today where Shenzhen Metro and Shenzhen SASAC expressed support, which lent support to the early day price action. HRINTH 25-50c higher, front ends outperforming long ends despite the huge rates move, more likely a reflection of positioning. STANLN 2-3bps tighter today, saw some FM flipping vs some RM adding. 

In Sovereigns, quiet start to the day and despite walking into a stronger macro backdrop. INDON/PHIL 0.25-1pt higher on the day (+/-2bp) and with some two-way across the quasi 10y with real money accounts. Demand for the 10y sovs regionally while the long end was mostly marked higher in the street with the on-the-run bonds outperforming. Frontiers sees SRILAN & MONGOL marked ~0.25-0.375pt higher and continued buying interest in the nonexistent MONGOL 27/28s. In IG, yet another episode of bonds gapping tighter. Liquidity remains a struggle with flows mostly one-way, generally better buying from RM/PB accounts alongside street lifts, making risk a challenge to recycle. KNBZMK is 4-6bps tighter as with RM buying and street lifts with the 33s still hot in demand, there was RM selling the new issues in the afternoon but was met with strong bids. PETMK 61 was lifted +118 (-3) with a good amount trading on street while ETF buying vs RM selling in the afternoon, curve is broadly 1-3bps tighter. India IG a little more quiet with light PB buying with benchmarks about 1bp tighter. BBLTBs finally catching up with the broader risk rally as we saw Local RM buying and street lifts, the 33s are 5bps tighter on day. PTTGC about 5bps tighter but there light RM selling in the belly, while TOPTB long ends were about 5bps tighter with street lifts in the 50s while belly continues to outperform on RM buying and is ~10bps tighter. In HY, closing 0.375-1pt lower here. Mostly still rate driven but bonds are catching up in spreads. Flows were mostly two-way from RM and better buying from HF but it quietened down in the afternoon.

AT1s closed the day about 0.1pt higher, with the sell-off in bunds and treasuries taking back some of the morning's rally. Flows remain pretty 2-way, with Asian private wealth and asset managers adding, while some UK investors take profits. UBS and BAMIIM will post results tomorrow. Active names include SOCGEN, BBVASM, ACAFP, BNP, SANTAN, LPTY, NDAFH, KBCBB, BNS, TD, SHBASS and HSBC.