Low Conviction In Asia, Ahead Of A Supply Deluge

T-Notes hold within the boundaries of Monday's tight range, hovering a little above Friday's late lows, +0-04+ at 139-05+, with cash yields sitting 0.4-1.4bp richer across the curve, marginal outperformance seen in the belly during Asia-Pac hours.

• Monday saw U.S. President Trump reiterate his typical bullish view of the U.S. economy. He also revisited the idea of a potential U.S. economic decoupling with China and pointed the finger at the Democrats, suggesting that they do not want to come to a deal re: fiscal aid. On the COVID-19 vaccine front, Trump hinted that the U.S. could approve a product in October. On global trade, Trump pointed to every nation ripping the U.S. off.
• Elsewhere, Tuesday saw China outline its global data security initiative that opposes undermining key infrastructure and data theft.
• Brexit risk and Sino-U.S. tensions continue to bubble in the background, providing the main sources of headline worry since the U.S. went home on Friday.
• Eurodollar futures -0.25 to +1.0 through the reds
• Focus turns to this week's U.S. sovereign supply slate, with today's 3-Year Note auction providing the first major focal point. Elsewhere, corporate issuance flow is expected to pick up this week. Tuesday will also see the release of the latest small business optimism read.