Cash Tsy Curve Steepens

T-Notes re-opened lower on the first trading day of 2021. The contract last operates -0-03+ at 137-31, holding a tight range since the open. Cash Tsy curve has steepened, yields last trade unch. to +1.8bp. Eurodollar futures sit unch. to -0.5 tick through the reds.

• The weekend brought some optimistic signals on the coronavirus front. U.S. chief infectious disease expert Fauci said that the distribution of vaccines is picking up speed, while the spread of new infections in New York appeared to be slowing down.
• The U.S. Congress is set to confirm the election of Joe Biden for the next U.S. President this week. Outgoing Pres Trump reiterated his calls for a vote recount in Georgia, while a group of GOP Senators led by Ted Cruz signalled that they will object to the certification of Trump's election defeat. Most expect their initiative to fall flat.
• Elsewhere, Nancy Pelosi was re-elected as Speaker of the U.S. House of Representatives.
• There is no U.S. bond issuance scheduled for this week, but 3-Month & 6-Month Bills will be auctioned on Monday. Construction spending & the final reading of Markit M'fing PMI are also due today.