Trial now

Dragged Flatter By U.S. Tsys Overnight


Flat Re-Open


Attempted Recovery Short Lived


(U1) Uptrend Weakening


(U1) New Contract Low


A distinct lack of macro headline flow has allowed T-Notes to stick to a 0-03 range in Asia-Pac hours, last -0-01+ at 138-28, with cash Tsys showing marginal twist flattening, as yields mostly sit within -/+ 0.5bp of their respective closing levels across the curve. E-minis have edged away from their late NY lows in post-settlement/Asia-Pac trade after a little more optimism re: fiscal talks in DC emerged on narrower differences between the Trump administration and the Democrats, although it is fair to say that many hurdles remain, which is reflected in the relative levels of e-minis vs. their Monday highs. There were also some positive musings re: the publication of COVID-19 vaccine trial results in Nov, although this doesn't really move the widely held timeframes re: broad distribution of a vaccine.

  • To recap, it was the Senate Republicans' focus on a targeted/piecemeal round of fiscal relief and Democrat commentary re: significant differences surrounding the matter that weighed on Wall St. into the cash equity close on Monday, before the aforementioned fiscal optimism became evident in post-settlement trade. A contact noted continued real money a/c buying of the front end in the NY morning along with some longer dated weakness linked to the T-Mobile corporate deal also being evident, which would have aided the steepening impetus on Monday.
  • Another raft of Fedspeak is due today, as is U.S housing starts & building permits.
MNI London Bureau | +44 0203-865-3809 |