Debate In Focus After Fresh Multi-Year Steeps

T-Notes have recovered off of the late NY lows, to last trade -0-01+ at 139-09.

• The space continued to focus on the prospect of a fiscal pact being agreed in DC, irrespective of the increased likelihood that such a deal may have to wait until after the election. House Speaker Pelosi was a little more upbeat than both NEC director Kudlow & Senate majority leader McConnell re: the prospects of a deal on Thursday. 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.
• Weekly jobless claims data saw fewer additions to the respective counts vs. expectations, although statistical quirks and any inference from the data continues to be questioned, at least in part owing to the impact of certain benefit schemes on the readings, while California's adjustments were also noted.
• Asia-Pac hours will see focus fall on the final Trump-Biden debate (starting at 02:00 BST).