Immune To E-Mini Bid

T-Notes held to a 0-06+ range in Asia-Pac hours, the contract is last +0-02+ at 138-20, just shy of best levels, with the curve bull flattening at the margin, yields sit unchanged to 1.0bp richer across the Tsy curve. The space recovered from its early lows, despite the strong rally seen in e-minis, with broader focus falling on Joe Biden being named U.S. President-elect over the weekend. On the flow side, a 5.0K+ round of buying in FV over several prices helped support, as did a recent TYZ0 block buy, paying through the offer, which saw fresh session highs ahead of European hours, supporting the broader Tsy space in general.

• As mentioned, the weekend saw Joe Biden become U.S. President elect, although the incumbent, Donald Trump, continues to push back against Biden's victory, with legal matters seemingly still in the offing (at least for now). Focus will now move to the COVID dynamic, both at home and abroad, its impact on the economy and the run-off elections in Georgia, set for early January, with the state's two Senate seats set to be contested (the Republicans only need to win one to uphold their Senate majority). It goes without saying that developments in the aforementioned Georgia Senate elections will be key for the U.S. fiscal trajectory (the GOP is expected to win at least one seat).
• To recap, a stronger than expected headline NFP reading and developments surrounding the U.S. election pressured Tsys on Friday, with T-Notes going out a little above NY lows, while the curve ran steeper on the day as 30s cheapened by over 7.0bp come the bell.
• Eurodollar futures sit unchanged to -0.5 through the reds, with light steepening flow seen early on in Asia, as flagged elsewhere.
• 3-Year Notes supply & Fedspeak from Mester & Kaplan is due on Monday.