A Narrow Re-Open After Wednesday's Chop

T-Notes see a tight re-open, last printing unchanged at 138-25+, hovering a touch above Wednesday's late session lows.

• The early Tsy bid unwound on Wednesday, after the space initially drew support from the U.S. fiscal impasse and evolving COVID situation in Europe, with the lack of a sustained meaningful bid despite the selloff in equities leaving many pointing to risk parity funds as the culprits. This left cash Tsys little changed come the close.
• The pricing on the latest 5-Year Note auction was solid enough, stopping 0.5bp through WI, although the dealer takedown ticked higher vs. prev., to sit just above the recent average, while the cover ratio edged lower, to sub-average levels.
• There is little in the way of true tier 1 risk events slated for Asia-Pac hours, so it will likely be a case of headline/market flow watching again for the time zone. Focus will then switch to Thursday's ECB monetary policy decision, in addition to the weekly U.S. jobless claims data, Q3 GDP reading (which is well and truly in the rear view) and 7-Year Note supply.