A Flat Open

T-Notes fairly flat at the re-open, last trading +0-00+ at 131-30+ after going out just shy of best levels on Wednesday, in what proved to be another day of fairly limited ranges.

• Tsys were little changed to a touch firmer across the curve on Wednesday, running flat to 2.0bp richer come the bell, with 10s outperforming at the margin. The bid stemmed from a rally in European bond markets, although firmer oil prices likely limited the rally. A pullback from best levels in U.S. equities provided another source of support as we moved through the day. Early NY block flow included a 3.5K seller of UXYU1 and a FVU1/WNU1 steepener (+19K vs. -2.95K).
• The release of the Fed's beige book did little for the market, confirming prior thoughts re: inflation and bottlenecks. Elsewhere, Fed's Harker continued to present himself at the hawkish end of the spectrum. Finally, the Fed "announced plans to begin winding down the portfolio of the Secondary Market Corporate Credit Facility (SMCCF)"…" SMCCF portfolio sales will be gradual and orderly, and will aim to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions for exchange traded funds and corporate bonds." The central bank's entire portfolio will be off the balance sheet by the end of '21, a Fed official said.
• The latest Chinese Caixin Services PMI survey headlines during Asia-Pac hours, with Thursday's domestic focus set to fall on labour market data (weekly claims & ADP employment) ahead of Friday's NFP print.