Risk-Negative Headlines Help T-Notes Edge Higher, Within Tight Range

T-Notes traded with a marginal bullish bias, holding a tight 0-05 range. Market closures in Japan, South Korea, Malaysia and Taiwan limited regional activity, while the U.S. will observe the Columbus Day.

• The weekend brought some risk-negative headlines, but they failed to generate any substantial buying interest in T-Notes. North Korea resumed its missile tests involving a nuclear operation unit, an apparent attack damaged a heavily guarded bridge connecting mainland Russia to the Crimean Peninsula, while China's Caixin Services PMI unexpectedly dipped into contractionary territory.
• Market pricing for the next FOMC meeting is little changed from today's opening levels with swaps implying a ~91% chance of another 75bp rate hike in November. The strong NFP report released last Friday reinforced expectations of continued aggressive tightening.
• T-Notes last trade +0-01+ at 111-17. Eurodollar futures run -2.0 to +1.5 tick through the reds.
• Fed Vice Chair Lael Brainard and Chicago Fed President Charles Evans will speak at the annual NABE conference today.