Long End Range Break

T-Notes -0-04 at 138-25+, after the contract went out around worst levels on Monday.

• Rhetoric surrounding the prospect of a fiscal relief Bill, focus on a blue sweep in the November election and an upturn in the health of U.S. President Trump pressured the U.S. Tsy complex on Monday, allowing the curve to steepen and longer dated yields to break out of their recent multi-month ranges. The session also saw 30-Year Tsy yields break above their 200-DMA for the first time since March 2019, with the benchmark ultimately closing above that particular metric.
• On the flow side, a TYZ0 block sale added some pressure in the NY morning, although real money buying in cash 2s, 10s and 20s cushioned the moves at the margin.
• A better than expected services ISM reading also played into the narrative, as did some focus on the upcoming round of 3-, 10- & 30-Year Tsy supply.
• Headline watching will remain at the fore for participants during the Asia-Pac session, with China still observing its national holiday.