The risk-negative themes outlined...........>

US TSYS: The risk-negative themes outlined elsewhere (dominated by Sino-U.S.

sabre rattling and the seemingly impending release of a U.S. report on the

Chinese origins of COVID-19) allowed T-Notes to extend on their late Friday

uptick from NY lows, last +0-08+ at 139-04+, with cash markets closed until

London/EU hours owing to the Japanese holiday period (this will be true Monday

through Wednesday). Ongoing holidays for mainland China also sapped liquidity,

resulting in low volume for the contract (~35K ahead of European hours),

although USD/CNH's failure to consolidate above CNH7.1500 and the subsequent

uptick from lows in e-minis allowed T-Notes to edge back from best levels.

- A reminder that Friday saw the latest tweak to the Fed's Tsy purchases (down

to $8bn/day from $10bn), which drew little in the way of market reaction.

- Eurodollar futures sit unchanged to 1.5 ticks higher through the reds.

- Little to note on the flow side.

- Factory orders and durable goods headline a slim local docket on Monday, with

focus on the aforementioned impending address from the U.S. intelligence

community re: the origins of COVID-19 in China.