As You Were

T-Notes +0-01 at 137-29+, tight at the re-open.

• The final FOMC decision of 2020 was ultimately in line with expectations, with new asset purchase guidance but no change to the asset purchase program itself. The decision and optimistic-looking summary of economic projections pressured the space, although T-Notes didn't quite revisit intraday lows. The space then rebounded/post-FOMC curve steepening reversed as Chair Powell's press conference went on, as he did not rule out future action if required. Essentially, Tsys round-tripped to pre-decision levels by the close of play, with yields little finishing changed across the curve on the day
• U.S. fiscal matters are now at the fore into year end, with positive headlines surrounding that particular matter driving the space pre-FOMC.
• Disappointing retail sales data provided the standout local economic release on Wednesday.
• Australian labour market data headlines the regional docket during Asia-Pac hours, although the broader ebb & flow, as well as any headlines surrounding domestic fiscal matters, will likely shape Tsy trade.