A Light Bid, Despite Fiscal Progress

T-Notes tick away from Friday's closing levels/lows in early trading, last +0-03+ at 137-27+, as the impact of the COVID-19 situation in the UK/Brexit dynamics outweigh the progress on the domestic fiscal front, although e-minis initially ticked higher, paying more attention to the latter, before pulling back to more neutral levels. It should be noted that headlines have revealed that Congress will not vote on the fiscal package until tomorrow. The weekend also saw the approval of Moderna's COVID-19 vaccine for emergency use in the U.S.

• A reminder that T-Notes went out around worst levels on Friday, while 20s provided the weak point on the cash curve, cheapening by 1.5bp come the bell, in what proved to be a limited pre-festive season session as participants waited for clarity on familiar areas of risk. Late headline flow on Friday looked to the latest escalation in Sino-U.S. tensions (although a chunk of this was telegraphed) and the easing of restrictions surrounding U.S. banks conducting share buybacks (although they will still be subject to some limitations). Elsewhere, Fed Vice Chair Clarida noted that further fiscal support would help get the economy through a "rough" couple of months, while he stressed that monetary policy is just where it should be.
• Little of note on the regional Asia-Pac docket to start the week, so fallout from weekend news flow will be eyed.