A Sigh Of Relief

T-Notes operate around their late NY levels/just above their Thursday lows, last -0-05 at 132-14+.

• As a reminder Thursday saw the curve twist steepen, with 30s cheapening by ~5.5bp on the day. A bid was seen during the European morning before the space backed off, with a fresh round of bids seen in the wake of the release of the ECB's monetary policy decision and accompanying statement, with focus on the short-term boost to the pace of ECB bond buying.
• The space then backed off as markets set up for 30-Year Tsy supply, adjusted for Verizon's $25bn 9-tranche jumbo issuance, reacted to better than expected weekly initial jobless claims data, while a large TU/FV steepener block was seen in the futures space and equities rallied. Some relief came as the 30-Year auction generated a mere 0.5bp tail, cover marginally softer vs. prev. and a touch below the recent averages, while dealer participation nudged lower and was below the recent averages as direct participation ticked higher. A block buyer in USM1 post-auction and Verizon's issuance coming in at the low end of exp. in size terms also provided some support before the space faded again into the close, even as fresh U.S. restrictions on Huawei became apparent.
• There is nothing in the way of notable tier 1 risk events scheduled during Asia-Pac hours.