Hope

T-Notes +0-06+ at 137-25 at typing. COVID-19 vaccine developments added fresh pressure to the Tsy space on Monday, building on the early momentum surrounding Joe Biden's designation as President-elect, with the curve bear steepening, as 30s closed 11.0bp cheaper on the day. As a reminder, Pfizer's vaccine showed promising results, although some still pointed to unanswered questions after scouring through the small print. Block sales in the futures space helped add to the pressure, with 10- and 30-Year yields registering multi-month highs in the process, before backing off. The cash S&P 500 registered a fresh all-time high, before a sharp pullback into the close, which helped Tsys move away from worst levels.

• The latest 3-Year note auction from the U.S. Tsy stopped through WI by 0.3bp, with an inline with recent average cover ratio and a larger than average dealer takedown, as the internals provided a mixed picture re: the strength of the auction
• Recent Fedspeak from Mester offered little new, as she stressed that the central bank is not out of ammo and pointed to her support re: an extension of the Fed's emergency facilities, while stressing that there is a long way to go re: the economic recovery.
• Eurodollar futures sit unchanged to +1.5 through the reds, while the golds trade as much as 3.5 ticks higher vs. settlement levels. This comes after a notable sell off in the space on Monday.