Higher But Rangebound, Attention On Frankfurt And D.C.

Tsys caught a brief bid in the Asia-Pac session with Brexit concerns at the fore, but eased off and went rangebound in early European hours as equities came off the lows.

• Mar 10-Yr futures (TY) up 4/32 at 137-24 (L: 137-21.5 / H: 137-25.5), sub-par volumes (~195k). The 2-Yr yield is down 0.4bps at 0.1449%, 5-Yr is down 1.1bps at 0.3925%, 10-Yr is down 1.3bps at 0.9229%, and 30-Yr is down 1.5bps at 1.6696%.
• Immediate attention is on the European Central Bank decision at 0745ET, presser 0830ET.
• The latter coincides with a solid U.S. data release: jobless claims alongside Nov CPI.
• In Washington, the Senate could vote today to approve the 1-week gov't funding extension that the House passed yesterday. Otherwise we still await progress on a COVID relief deal, with a gap to be bridged somewhere between Treas Sec Mnuchin's $916B proposal and the bipartisan group's $908B proposal (which that gap being much more complex than $8B).
• Some attention also on the FDA advisory committee meeting on approving the Pfizer/BioNTech COVID vaccine, goes all day (0900-1800ET), and on Congressional Oversight Commission hearing on CARES Act (1000ET).
• In supply: $65B of 4-/8-week bills at 1130ET, with $24B 30-Yr Bond auction at 1300ET. NY Fed buys ~$3.625B of 7-20Yr Tsys.