Little Movement Overnight

A very limited Asia-Pac session for U.S. Tsys, with the cash market little changed at typing, while T-Notes sit +0-00+ at 137-25, sticking to a 0-02+ range. Trade was non-committal as we moved towards the Christmas break, with continued focus on Brexit and the fiscal situation in DC.

• The curve ran steeper on Wednesday with 30s cheapening by a little over 3.0bp come the close of play, although the space finished off of intraday cheaps, with several desks pointing to real-money a/c interest in 10s around Wednesday's lows. Brexit optimism fed into the broader core global FI price action on Wednesday, unwinding the early, modest bid surrounding the U.S. fiscal saga, and more, while U.S. economic data was mixed and provided no defining impetus for the space.
• Expect the aforementioned Brexit and DC fiscal matters to headline as we move towards Christmas, with the usual low liquidity warnings evident. Thursday will see the release of the details re: next week's 2-, 5- and 7-Year Tsy supply.