Democracy Under Siege

Not how you would expect markets to finish: risk-appetite evaporating as DC protestors breach the Capitol, Congress that had been in process of counting electoral votes in recess, DC Mayor orders 1800ET curfew. Heavy volumes (TYH>2.4M) as yields surged (10YY tapped 1.0524%).

• Tsys opened weaker along with equities after GA special run-off election points toward Democrats gaining one if not two Senate seats.
• Shrugging Off Big ADP Employment Data Miss: Tsy futures headed back toward late overnight lows after bouncing in lead-up to Dec ADP data: Huge miss: -123k bs. +75k est (+307k in Nov). Very heavy volumes early as yield curves bear steepen to 4+ year highs.
• Tsys made new session lows as equities bounced lows (still inside overnight range w/ESH1 +4.0 at moment). Decent full day volumes just over hour after NY open: TYH1>1.3M. Sources reported real$ and bank portfolio selling across the curve, prop and fast$ two-way in short end, deal-tied selling getting lost in the mix, curve steepeners.
• The 2-Yr yield is up 2bps at 0.1408%, 5-Yr is up 5.1bps at 0.4274%, 10-Yr is up 8.1bps at 1.0355%, and 30-Yr is up 10.2bps at 1.8099%.