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

US TSYS: 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, with yields unchanged

to 1.5bp cheaper across the curve as we head into European hours. T-Notes last

-0-03+ at 138-27. Participants also had one eye on this week's U.S. Tsy coupon &

IG supply slates.

- 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. There was also some worry re:

U.S. VP Pence, after an aide tested positive for COVID-19 on Friday.

- A reminder that Friday saw a further trimming of the Fed's daily Tsy/TIPS

purchases for the coming week, down to $7bn per day, from $8bn.

- Eurodollar futures sit 0.5 to 2.0 ticks softer through the reds.

- Fedspeak from Bostic & 3-Year supply headline the local docket on Monday.