Marginally Firmer Overnight

Another regulatory-driven dip in Chinese tech equity listings provided incremental support for the U.S. Tsy space during overnight dealing. T-Notes +0-02 at 133-07 into European hours, sticking within the confines of a narrow 0-04 range, while cash Tsys print little changed to ~1.5bp richer on the day, with some very modest flattening in play. Comments from Philadelphia Fed President Harker ('23 voter) re: tapering had no real impact on the space.

• To recap, 10s led the weakness witnessed on Friday, cheapening by ~4.5bp come the bell. A block buy in FV futures (+15K, ~$759 DV01 equivalent) provided some respite to the sell off during the NY morning, before volume picked up as T-Notes had a look below their Thursday low. The space then meandered through the NY afternoon, closing a little off worst levels of the day, even as equities cheapened. A WSJ piece dominated headline flow on Friday, with the article suggesting that "Federal Reserve officials will seek to forge agreement at their coming meeting to begin scaling back their easy money policies in November."
• Monday's broader docket is quite limited when it comes to notable economic releases, so it will be a case of headline/flow watching.