E-Mini Bounce In Driving Seat

The major factor in Asia-Pac hours was E-minis pushing away from their Wednesday's trough. While there has been nothing in the way of overt triggers during Asia-Pac hours, at least on the broader wires, some positive musings re: COVID-19 treatment matters (albeit, developments that seemingly do not shift the vaccine timetable) during the NY- Asia crossover and the aforementioned FT story re: "the US is allowing a growing number of chip companies to supply Huawei with components as long as these are not used for its 5G business," are the probable drivers here. T-Notes were offered but are recouping their modest losses, on decent volume of ~105K, last -0-00+ at 138-25, operating in a 0-04+ range, with cash yields unchanged to 1.7bp cheaper across the curve, bear steepening in play.

• As a reminder the early Tsy bid unwound on Wednesday, after the space initially drew support from the U.S. fiscal impasse and evolving COVID situation in Europe, with the lack of a sustained meaningful bid despite the selloff in equities leaving many pointing to risk parity funds as the culprits. This left cash Tsys little changed come the close. The pricing on the latest 5-Year Note auction was solid enough, stopping 0.5bp through WI, although the dealer takedown ticked higher vs. prev., to sit just above the recent average, while the cover ratio edged lower, to sub-average levels.
• Focus will fall on Thursday's ECB monetary policy decision, in addition to the weekly U.S. jobless claims data, Q3 GDP reading (which is well and truly in the rear view) and 7-Year Note supply.