The prospect of deeper PBoC easing,....>

BOND SUMMARY: The prospect of deeper PBoC easing, further moderation of COVID-19

deaths in various European hotspots, an impending speech from Fed Chair Powell

scheduled for Wednesday (with some expecting a clear reiteration/pushback

against negative rates) and the spill over from Wall St.'s Friday session

allowed the Tsy curve to bear steepen in Asia-Pac hours. Participants also had

one eye on this week's U.S. Tsy coupon & IG supply slates, with T-Notes last

-0-03+ at 138-27. The aforementioned matters outweighed continued Sino-U.S.

sabre rattling, as well as the re-surfacing of COVID-19 in Wuhan (albeit to a

very limited extent) and a lockdown in a north-eastern Chinese city.

- JGB futs also traded on the backfoot, last -13, as the 7-Year sector

underperformed. Focus in fell on the potential for further domestic fiscal

spending.

- In Australia, the steepening impetus from Tsys spilled into Sydney hours,

extending the moves seen in SYCOM hours, with local ACGB supply matters adding

further weight to the long end. YM -0.5, XM -7.5. The gradual unwinding of local

COVID-19 restrictions likely added further pressure to the space.