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USDCAD TECHS

Circling Major Support

US TSYS SUMMARY

Stocks and Rates Near Session Highs Late

AUDUSD TECHS

Tepid Bounce

LATAM

OUTLOOK: WEEK AHEAD

US EURODLR OPTIONS

Nice Mark for Early Put Buyer

US TSYS

T-Notes have stuck to a tight, 0-02 range in early Asia-Pac trade and last trade unch. at 139-30+. The contract ground higher initially, testing the 140-00 mark, as the weekend failed to remove the uncertainty surrounding U.S. fiscal matters. U.S. President Trump issued four executive orders on coronavirus relief measures, as negotiations between the White House and Democratic lawmakers failed to bring a breakthrough. The Democracts criticised the President's action on substantive and procedural grounds, with many questioning its legality. The POTUS spoke to reporters today, expressing openness to funding 100% of jobless benefits (his executive order requires states to foot 25% of the bill, which provoked a backlash among state governors) and suggesting that Democrats are willing to return to the negotiating table. T-Notes backed off highs after his comments, ebbing towards unchanged levels.

  • Speaking to CBS on Sunday, Chicago Fed Pres Evans weighed in on the matter, as he called for another round of fiscal support, noting that another stimulus package is "extremely important".
  • Sino-U.S. tensions remain under scrutiny, after Washington sanctioned 11 Chinese/HK officials including Chief Exec Carrie Lam, while U.S. Health Sec Azar touched down in Taiwan.
  • Meanwhile, U.S. coronavirus case count topped 5mn, while the nation's chief epidemiologist Fauci poured cool water on enthusiasm about any imminent vaccine, pointing to possible limitations.
  • The weekend saw some chatter about possible interference by China, Russia and Iran in the upcoming U.S. Presidential election, as lawmakers and officials commented on Friday's warning from a top U.S. intelligence official, who spoke to that effect.
  • Cash Tsys are closed today, owing to a market holiday in Japan.
  • Eurodollars last seen unch. to -0.5 tick through the reds.
  • Chinese inflation data headlines in the Asia-Pac session. Later in the day, focus turns to another round of comments from Fed's Evans.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com