Issuance In Focus

T-Notes hold around the late lows witnessed during Monday's session, last -0-01 at 139-15+. Although the contract continues to operate in familiar territory.

• The early bid in the space gave way as we moved through NY trade, with equities grinding higher, tracking the path of least resistance, while some pointed to weekend COVID-19 treatment developments/reports and Friday's BBG story suggesting that the Trump administration is privately seeking to reassure U.S. companies that they can still do business with the WeChat messaging app in China as risk supportive factors.
• Prevailing ranges in the Tsy space were tight.
• Marginal underperformance in the 7-10 Year sector was evident on Monday, with the space looking to this week's supply schedule (headlined by 2-, 5- & 7-Year issuance). The long end wasn't quite as soft as the aforementioned sector, perhaps aided by some light focus on month-end flow dynamics.
• A contact has noted that the Sep/Dec futures roll is picking up pace, with the real money community likely aiming to have roll completed by the end of this week to avoid potential delivery issues.
• IG issuance topped $11bn on the day.
• Little of note on the regional docket during Asia-Pac hours.