All Eyes On Georgia

T-Notes hold to a tight range at the re-open, a shade above late NY levels, printing +0-01 at 137-28, with the market showing little reaction to the early Georgia exit poll from CNN (flagged in earlier bullets). Elsewhere, the latest round of headlines covering Sino-U.S. matters (also flagged in previous bullets) seem to have had little impact on broader risk sentiment.

• This comes after the curve bear steepened on Tuesday, with T-Notes going out near worst levels as 30s cheapened by a little over 5.0bp as equity markets nudged higher (although failed to unwind Monday's losses) and crude oil surged as Saudi Arabia shocked participants with a unilateral 1mn bpd oil output cut, which will be in place over February and March. 10-Year breakevens registered another cycle high against this backdrop, while the 5s/30s curve hit the steepest level seen since late 2016.
• A strong ISM m'fing manufacturing helped the broader risk-positive tone evident in U.S. hours, with focus on the Senate run-off in Georgia (please click here for our full preview of that event). A late NY morning block sale of USH1 also helped the steepening momentum.
• We also saw another decent US$ issuance slate build.
• Elsewhere, there was focus on Monday's Fedspeak, which was headlined by the potential for the tapering of the Fed's asset purchase schemes as we move forwards, albeit against a continued backdrop of ultra-loose monetary policy settings.
• Developments surrounding the aforementioned Georgia Senate run-offs will headline in Asia-Pac hours (polls close at 19:00 eastern), while the latest round of Chinese Caixin services and composite PMI surveys headline the Asia-Pac docket.