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Covid Worry Weighs On Risk Despite Fiscal Progress In DC


T-Notes jumped early on and settled near the best levels of the session. The contract last trades +0-03 at 137-27, just shy of earlier high of 137-28. Cash Tsy yields trade lower across the curve, with belly outperforming. Eurodollar futures sit -0.5 to +0.5 tick through the reds. News flow has calmed down after headlines noting that U.S. congressional leaders have reached a deal on a $900bn economic relief package, which is expected to be sent to the House on Monday. Elsewhere, Brexit stalemate & UK Covid-19 developments have weighed on wider risk appetite.

  • JGB futures have crept higher, last trade at 152.05, 1 tick below last settlement. Cash JGB yields are mixed, with a degree of twist steepening creeping in. The BoJ left the sizes of its 1-10 Year JGB purchases unchanged.
  • In Australia, YM +1.0 & XM +1.0. Cash ACGB yields sit 0.7-1.3bp lower across the curve. Bills trade unchanged to -1 tick through the reds. Locally, focus falls on broader Covid-19 curbs implemented to contain the spread of an outbreak in Sydney.

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