Looking To The Long Weekend

T-Notes (U1 contract) -0-00+ at typing, printing 131-24+, holding to a narrow range after the re-open

• Cash Tsys softened across the board on Thursday, with 10s providing the weak point on the curve, cheapening by ~3.0bp come the bell. Weakness in Gilts, stemming from BoE rhetoric, dragged the space lower in the early rounds of NY dealing, with better than expected weekly initial jobless claims data and speculation surrounding U.S. President Biden's budget adding further downward impetus. Another round of firm supply from the Tsy, coming in the form of 7-Year issuance, helped the space off of lows, with the auction stopping through WI by 0.6bp, as the cover ratio ticked further above the recent averages and dealer participation slid further below its own recent averages. On the flow side, desks flagged real- & fast-money a/c's initiating 5-/30-Year steepeners.
• There is nothing in the way of tier 1 risk slated for release during Asia-Pac hours, with April's PCE suite providing the focal point of Friday's local docket. The PCE reading will be supplemented by the release of the latest Chicago PMI survey, final UoM sentiment reading and inventories data. A reminder that Friday will bring an early close for the cash Tsy market ahead of Monday's Memorial Day holiday (which itself will see a shortened session for Tsy futures and no cash trade).