[MARKET ANALYSIS] Thin conditions for fixed with numerous regions away, lows hit on Iranian rhetoric

A slightly bearish start to the week, though conditions are thin on account of holidays in China, Japan and the UK.  USTs down to a 110-15+ trough this morning, hit by an uptick in energy, which reverberated through on a wider airing of comments from Iran regarding the US' activity around Hormuz. At most, USTs have been lower by 5+ ticks. Ahead, we await remarks from Fed's Williams and then the financing estimates ahead of refunding later in the week. From Williams, we are attentive to his view on forward guidance after several Fed members, including three voters, objected to language implying the next move would be a cut. In his most recent remarks, Williams described policy as modestly restrictive and well-positioned, adding that the Middle East conflict was already lifting inflation. Bunds are in-fitting directionally, though in a slightly wider range and with modestly greater pressure on catch-up from the long weekend. Hit a 125.09 base with losses of 27 ticks at most, bottoming alongside the above move in USTs. No real reaction to the region's Final Manufacturing PMIs, or the latest ECB SPF, which saw near-term inflation revised up but the longer-term view maintained.