Lightly Bid Into European Hours

T-Notes ticked higher as we moved towards European hours, although there has been little in the way of notable headline flow and the contract continues to hold a tight range, last +0-03 at 139-07. Earlier in the session 10.0K TYV0 138.00/140.00 risk reversals traded via block (delta hedged), this comes after a very similar expression traded during Friday's Asia-Pac session. Elsewhere, a market contact flagged a 5.5K screen seller of the TYV0 138.00/140.00 call spread, which was covered.

• The cash curve has seen some light bull flattening, with yields unchanged to 1.4bp richer.
• Broader markets were seemingly happy to look through the latest round of Sino-U.S. tension, geopolitical worry surrounding Belarus and pockets of COVID-19 restrictions in Europe/Asia, as they search for more decisive news flow at the start of a new trading week.
• On the risk-positive side of the coin, the PBoC's latest round of injections via MLF ops outweighed August's maturating liquidity provisions under the same facility (which are split between coming due today and falling due on August 26).
• Eurodollar futures unchanged to +0.5 through the reds.
• The empire manufacturing survey and an address from Fed's Bostic headline Monday's local docket.