COVID Vaccine Headlines Limit The Space Overnight

The U.S. Tsy space was subjected to some light pressure overnight on the back of headline flow pointing to a Pfizer COVID-19 vaccine being on track for a regulatory review in October. Still T-Notes held to a 0-04 range, last -0-03 at 139-15, with yields unchanged to 0.5bp cheaper across the curve.

• Joe Biden's acceptance speech re: the Democratic Party's candidacy for the Presidential race held no real surprises.
• As a reminder, T-Notes edged away from best levels during Thursday's NY trade, with the curve bull flattening on the day and equities bid. Soft U.S. data fed into the flattening narrative, while the recent run of inflation pricing and the easy does it messaging from Wednesday's Fed minutes resulted in a tail of over 5.0bp vs. WI in the latest 30-Year TIPS auction, with the takedown metrics and cover ratio softer than recent averages. Thursday's flow was dominated by a TY/UXY steepener. A Johnson & Johnson 6-parter headlined the corporate issuance slate on Thursday
• We also found out that Fed Chair Powell will deliver a speech on Thursday August 27 (at the virtual Jackson Hole symposium) regarding the central bank's monetary policy framework review.
• Flash PMI data and Fedspeak from Daly headline on Friday.