Light Steepening Apparent To Start The Week

U.S. Tsys came under light pressure in the first Asia-Pac session of the week, aided by fiscal musings out of the U.S. from the likes of Trump, Pelosi & McConnell (although significant differences remain between both parties) and U.S. President Trump's health seemingly taking a turn for the better over the weekend (see earlier bullets for further details). T-Notes held to a 0-03+ range overnight, last -0-02 at 139-12, with the cash space steepening a little.

• We have flagged it elsewhere, but it is worth highlighting the following weekend snippet from Politico: "On Thursday, Pelosi and Mnichin held a private phone call with Fed Chair Powell to discuss state and local funding, and municipal lending. This call has not yet been reported, and underscored the lengths to which the two principals are going to try to get a deal."
• A reminder that the Trump COVID situation & fiscal narrative dominated Friday's NFP release (in terms of market reaction) during the final session of last week, with T-Notes going out just off worst levels (which we have now traded through), while the cash space steepened.
• The non m'fing ISM reading, along with addresses from Fed's Evans and Bostic headline the U.S. docket on Monday.