Fiscal Fireworks Courtesy Of Donald

Activity has cooled after the Trump-inspired uptick seen during Asia-Pac hours, which centred on fiscal matters. Ultimately, Trump is seeking larger stimulus checks for individuals ($2,000/person vs. the current $600) and this may create some issues owing to the government funding timeline. If Trump fails to sign off on the current spending Bill stimulus measures could be delayed by weeks owing to a government shutdown, while some existing unemployment support schemes would lapse. Still, the reaction was muted in the grand scheme of things, with focus on when fresh stimulus will be passed, not if (although GOP reaction to Trump's move will be eyed). T-Notes sit a little shy of best levels, last +0-02+ at 138-01+, operating within a 0-04 range, while the light twist flattening of the cash curve has held, with 30s ~1.0bp richer on the day. On the flow side, there was a 3750 block buyer of the TYG1 137.00 puts.

• As a reminder, Tuesday saw focus fall on the ongoing Brexit impasse and the UK's aggressive COVID strain's potential/realised spread to other countries, which allowed the space to grind higher as Wall St. finished mixed. Local data was ignored. T-Notes went out marginally below their session high, while the curve bull flattened as 30s went out 2.5bp richer on the day, although volume was subdued. Flow was headlined by a ~37K screen buyer of the TYH1 138.00/137.00/136.50 put tree.
• Eurodollar futures sit unch. to +0.5 through the reds, with a 20K block seller of EDH1 providing the highlight on the flow side thus far.
• Weekly jobless claims, MBA mortgage apps, durable goods & PCE data headline locally today. Elsewhere, 2-Year FRN supply is also due.