Debate Fails To Move The Needle

US TSYS: T-Notes struggled for a clear sense of direction in Asia-Pac trade, with no real game changing moments identified in the final Trump-Biden debate. Still, volume in the contract was above average overnight, with the contract last unchanged at 138-10+ after managing to recover from worst levels. Cash Tsy trade has seen light bull flattening creep in, but yields are within 1.0bp of closing levels. Block flow was noted, as the TYF1 138.00/137.00 put spread saw 20.0K blocked at 0-23, which looked like a sell, some suggested that this looked like the rolling down and out of an existing position. There was also some small screen interest in the FVZ0 124.00/124.50/125.00 call fly, with 2.0K lifted there.

• Thursday saw participants continue to focus on the prospect of a fiscal pact being agreed in DC, as opposed to the timing. Still, participants were willing to look through the more cautious leanings from the Republican side of the discussions, with longer dated yields leading the cheapening as the space bear steepened and the 5s30s spread hit the steepest level seen since the aftermath of the 2016 election.
• Eurodollar futures sit unchanged to +0.5 through the reds.
• Flash PMI data is due today. Elsewhere, NY Fed's Logan is set to speak on market liquidity.