Familiar Matters & A Strong 30-Year Auction Result In Bull Flattening

T-Notes tight at the re-open, last dealing -0-01 at 137-27+. We should flag that the NY/Asia crossover saw a U.S. FDA advisory panel recommend the approval of Pfizer and BioNTech's COVID vaccine for emergency use in people over 16 years old.

• The U.S. Tsy curve bull flattened during Thursday trade, against a backdrop of Brexit worry, mixed domestic data and little in the way of tangible progress re: domestic fiscal matters in DC, with 30s richening by over 5.0bp come the close. Price action was choppy but contained over the ECB meeting before the aforementioned matters returned to the fore, allowing T-Notes to push on, as the contract finished Thursday around late NY highs.
• The latest 30-Year auction aided the flattening narrative, stopping through WI by well over 1.0bp, while the cover ratio firmed to above recent average levels and dealer participation slid.
• The Asia-Pac docket is thin, with nothing in the way of tier 1 catalysts evident.