A Tight Re-Open After Tuesday Unwind

A narrow re-open for T-Notes, with the contract last trading -0-01 at 136-29, just off its late Tuesday session highs.

• Cash Tsys unwound most of their early cheapening as we moved through Tuesday's session, with the curve showing very marginal twist steepening come the bell. The movement wasn't one way, with some chop seen over Janet Yellen's appearance ahead of the Senate Finance Committee as she noted that she was open to considerations surrounding the issuance of 50-Year Tsys. Yellen noted that "there is an advantage to funding the debt, especially when interest rates are very low, by issuing long-term debt." Still, Treasury has only recently re-introduced 20-Year Tsy auctions, and several sell side notes have suggested that 50-Year issuance doesn't provide a good fit with Treasury's debt management goals against the current backdrop. However, this doesn't mean that Treasury will not conduct another study surrounding demand for longer dated issuance, particularly under a new Treasury Secretary.
• 5- & 10-Year breakevens moved to fresh cycle highs.
• Other points of interest included accusations of Chinese genocide re: Uighurs, with those comments coming from members of the outgoing Trump administration and incoming Biden administrations.
• There is nothing in the way of notable tier 1 risk slated for Asia-Pac hours.