Optimism Over U.S. Fiscal Talks & Trump's Health Weighs On Core FI

Core FI have started the week on the back foot, as markets digested growing optimism over U.S. fiscal negotiations (even as there has been no firm breakthrough as of yet) and the condition of U.S. President Trump, who could be discharged from hospital as soon as on Monday. T-Notes have inched lower, looking through Friday's worst levels, and last sit -0-02+ at 139-11+. Light bear steepening has crept into cash Tsy space, with yields last seen unch. to +1.7bp. Eurodollar futures trade +0.5 to -0.5 through the reds.

• JGB futures have followed suit and last trade at 152.05, 11 ticks shy of settlement. Cash JGB yields generaly sit higher a tad, with 3s & 30s underperforming ahead of tomorrow's 30-Year JGB supply. No changes to the sizes of BoJ's 1-3 & 5-10 Year JGB purchases today; focus turns to an address from BoJ Gov Kuroda.
• In Australia, YM -1.0 & XM -5.5 at typing, with the ACT, NSW, South Australia and Queensland observing regional holidays. Bills trade unch. to -2 ticks through the reds. Little in the way of market reaction seen upon the release of Melbourne Institute inflation figures and NAB Business Confidence, as participants already focus on tomorrow's RBA decision & federal budget.