A narrowing of fiscal differences (and......>

US TSYS: A narrowing of fiscal differences (and perhaps impending white smoke

from Brussels) at the extended EuCo gathering has done little to move the space

ahead of European hours. With the meeting participants set to re-convene this

afternoon. Elsewhere, COVID-19 worry in the likes of the U.S., Spain, Italy and

Hong Kong, as well as simmering Sino-UK tensions, combined with the

aforementioned lack of firm commitment on the EU fiscal front, kept a lid on

risk appetite overnight, lending some light support to Tsys. T-Notes last +0-02+

at 139-14, holding a 0-04+ range, with yields sitting 0.2-1.7bp richer across

the curve, light bull flattening evident.

- As a reminder, Friday saw the curve bear steepen at the margins, with the S&P

500 bid into the weekend. Tsys were subjected to light volumes and lacked any

real catalyst in the final session of last week. Also worth noting that the Fed

entered its pre-meeting blackout over the weekend.

- Little of any real note on the local slate on Monday, with broader focus on EU

& U.S. fiscal matters, as well as the findings of two early stage COVID-19

vaccine trials.