Fiscal Still Dominates The Broader Tone

Dynamics in Aussie bonds lend support to T-Notes in limited early Asia-Pac trade, with the contract last +0-01+ at 139-08+.

• This comes after a fairly subdued Wednesday, as TY volumes sagged. The early goings set the tone for the day, with Tsy Secretary Mnuchin watering down any lingering expectations of a pre-election fiscal pact in DC, while late NY trade saw European COVID worry move to the fore. This allowed cash Tsys to finish unchanged to ~2.0bp richer, although the space edged off of richest levels as we moved through NY trade.
• Fedspeak and data failed to move the needle, with the aforementioned matters dominating.
• China's 4-part US$ issuance headlined the issuance slate on Wednesday.
• Little in the way of true tier 1 risk slated for the remainder of the Asia-Pac session, so headline watching will be at the fore.