Flattening Extends Overnight

T-Notes nudged higher during Asia-Pac hours, last +0-05 at 138-14+, through Tuesday's best levels. Cash Tsys saw some light bull flattening, with yields sitting unchanged to ~2.0bp richer across the curve, building on the momentum seen on Tuesday.

• President Trump continued to provide election-related unrest and fired the Director of the Cybersecurity and Infrastructure Security Agency from his post on election related matters.
• Flow-wise 40.0K of FVF1 126.00 call sales were quasi-hedged via 10.0K of TYZ0 lifts, split across 2 block trades.
• As a reminder, this comes after T-Notes went out at best levels on Tuesday, while 30s richened by 5.7bp come the bell. Markets continued to exhibit their skittish tendencies, as eyes drifted back towards the swelling COVID-19 case count in the U.S. & subsequent state level mitigation measures on Tuesday. Soft U.S. retail sales data was also seen. A deeper U.S. pullback from the Middle East and Fed candidate Judy Shelton's failure to scale the latest Senate hurdle drew attention later in the day. On the flow side, a TY futures block buyer and a ~55K TYF1 139.50 call screen-based play supported the broader flattening dynamic. Tuesday saw a busy $-issuance slate, with Saudi Aramco's 5-part jumbo round headlining.
• Eurodollar futures sit unchanged to +0.5 through the reds, with a flurry (~19.0K) of EDZ0 salles noted at 99.750.
• 20-Year Tsy supply and Fedspeak from Williams, Bullard & Kaplan headline locally on Wednesday.