Core FI Bid To Start The Week

The trifecta of broader COVID mitigation measures in Europe, a lack of fiscal impulse coming from the Hill and the recent re-pricing of a "Blue Wave" U.S. election scenario weighed on risk at the start of the new week, providing a bid for U.S. Tsys, extending on the flattening witnessed on Friday. T-Notes last +0-05 at 138-16+, with cash Tsys running 0.6-3.6bp richer across the curve, bull flattening.

• The offshore impetus dragged the Aussie bond space flatter, with YM +0.5 and XM +4.5 last, as the latter trades through its SYCOM high. A solid ACGB '28 offering helped bulls, even after some corporate and offshore A$ deals were launched earlier in the day. We also saw the state Premier of Victoria confirm that all retail outlets will be allowed to open from Wednesday.
• The combination of an uptick in JGB futures (+11 last) and broader risk dynamic helped to support the belly area of the JGB curve, although continued heavy offers in 10-25+ Year BoJ Rinban ops meant that the super-long end of the curve continued to underperform in afternoon trade.