Month-End In View

A narrow re-open for T-Notes with the contract last +0-01 at 137-09.

• Tsys unwound their early strength as equities rebounded on Thursday, with gyrations in the latter still focused on retail trade dealings in heavily shorted small cap equity names, which has resulted in government level inquests and platforms suspending/restricting trade for some of the equity names that have garnered attention in recent days. Equities pulled back from best levels as we worked through NY trade, allowing Tsys to edge away from lows. That left the curve steeper at the bell, with 30s sitting ~3bp cheaper on the day. 10s had a limited, and indeed brief, foray below 1.00% for a second consecutive day, before the aforementioned cheapening saw that benchmark close around the 1.05% level.
• The latest round of 7-Year supply was well received, stopping through WI by 0.4bp, with cover holding steady and indirect participation nudging higher.
• There is little in the way of tier 1 headline risk slated for Asia-Pac hours, with month-end flows and Fedspeak set to dominate during Friday's NY session.