Further Away From Best Levels, Curve Twist Flattens

The space has edged further away from session peaks after the early bid faded and risk assets regained some poise. That leaves TYM2 +0-01+ at 119-10, 0-10 off the peak of its 0-15+ range, on volume of ~120K, with S&P 500 e-minis ~0.6% above settlement. A quick look at cash Tsy trade reveals a twist flattening bias, with 2s providing the weakest point on the curve, sitting ~1.5bp cheaper on the day at typing, while 7s provide the firmest point, richening by ~1.5bp. There hasn’t been much in the way of meaningful headline flow to digest since the flurry of COVID headlines that crossed earlier, leaving market flows at the fore.