Flatter Early On

Flattening has been seen since the Sydney re-open, with YM +0.5 and XM +4.0, after the contracts held to a tight range during SYCOM hours.

• The unwind of some of the Fed's support facilities has stolen the headlines during the NY/Asia crossover, with the move forced by the U.S. Tsy, while the central bank noted that it "would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy." Tsy Secretary Mnuchin requested the return of any unused funds, which sums to ~$455bn.
• Familiar matters were in play during NY hours, with a focus on the U.S. COVID situation, vaccine developments and parties in DC preparing to come back to the table re: fiscal support discussions.
• Closer to home, Sino-Aussie tensions remain in focus.
• Domestically, flash retail sales data and the release of the AOFM's weekly issuance schedule will hit during today's session.