Rangebound

T-Notes have wavered in a tight 0-02 range as the space has digested weekend news flow, looking through geopolitical tensions and the Oracle/TikTok saga. Regional docket has been rather uninspiring, with the PBoC leaving its LPRs unch., as expected. Within the U.S., news flow has centred on political controversies surrounding the nomination of a new Supreme Court Justice to replace the late Justice Ruth Bader Ginsburg. U.S. President Trump announced that he will nominate a woman at some point this week, drawing the ire of Democrats who deem the attempt to appoint a new judge before the presidential election unacceptable. Two GOP Senators also spoke against filling the vacant seat before the election and focus falls on whether opposition among Republican Senators will gain any traction. At typing, T-Notes trade -0-00+ at 139-12+. Eurodollar futures last sit unch. to +0.5 tick through the reds. Cash Tsys are closed, owing to a market holiday in Japan. Comments from Fed's Brainard take focus in the U.S. today.

• Down Under, YM +0.5 & XM +2.0 with bull flattening seen in cash ACGB space as well. Aussie bond yields sit 0.4-2.1bp lower as we type. Bills trade -1 to +1 tick through the reds. The domestic calendar is virtually empty today, turning focus to headline/market flow. The latest Victorian coronavirus data has stoked optimism, with the daily Covid-19 count falling to the lowest level in more than three months. PM Morrison struck an optimistic note re: recovery of domestic jobs report and suggested that the next budget will involve various support measures, but refused to disclose any details. Elsewhere, the Sydney Morning Herald reported that the government plans to "unleash an 'astounding' amount of spending" to shore up the economy.