Nikkei Bid & TY Block Sale See Space Off Highs

The aforementioned negative news flow that was evident over the weekend, which was centred on the lockdown situation in Europe & the UK/weakness in crude oil, and perhaps a degree of caution ahead of this week's busy, risk-laden domestic docket, supported the space in the early goings, with pockets of buying evident in the space (notably in TY). However, the contract is now back from best levels after the Nikkei 225 traded on the front foot, which allowed 5&P 500 e-minis to bottom out and unwind early losses.

• A ~2.5K block sale of T-Notes also helped the space back from early highs.
• Headline flow has generally been light since the re-open, outside of a stronger than expected round of Chinese Caixin manufacturing PMI data, which had no real impact on the space.
• T-Notes last +0-00+ at 138-07+, operating in a 0-04+ range, with cash yields running unchanged to 1.4bp richer across the Tsy curve.