Marginally Firmer In Asia

T-Notes last +0-03+ at 132-16+, threatening to break above Friday's highs while sticking to a 0-05+ range on volume of ~80K overnight. Cash Tsys trade little changed to 1.0bp richer across the curve. There has been a distinct lack of tier 1 headline flow, both over the weekend and since the broader markets reopened. Focus has therefore fallen on the simmering Israeli-Palestinian tensions and apparent distaste from various corners of the UK political sphere re: certain Brexit matters, although this did little for markets. Some worry evident in the Asia-Pac region re: COVID (most notably in Taiwan) likely provided some incremental support to Tsys. Elsewhere, there was no immediate reaction in the space to the softer than expected round of the Chinese monthly economic activity data, with the releases still reflecting significant bounces in Y/Y terms (albeit slower growth vs. what was seen March). Elsewhere, China's surveyed unemployment rate moved lower, now printing in line with late '19 levels. China's NBS stressed that the Chinese economic recovery continues to be "uneven."

• To recap, the cash Tsy curve bull flattened on Friday, with 30s leading the way, richening by ~5.5bp come the bell. The bulk of the richening move took place ahead of U.S. hours, with the lower yield environment and some likely short covering supporting U.S. equity indices after the weakness seen earlier in the week. Friday's domestic data fell on the disappointing side of the spectrum, with retail sales, industrial production and the headline UoM sentiment readings all missing consensus, while the inflation expectations components in the latter surged to multi-year highs.
• Commentary from Fed Vice Chair Clarida headlines the domestic docket on Monday. That will be supplemented by comments from regional Fed President's Kaplan & Bostic, as well as the release of the latest Empire manufacturing survey & NAHB housing data.