Narrow Range In Asia After Thursday's Cheapening

T-Notes stuck to a tight 0-03+ range in Asia-Pac hours, with the contract last printing -0-01+ at 135-26. The cash space has seen some marginal bull flattening in the wake of yesterday's bear steepening, leaning on the downtick in equity and crude oil markets during the timezone. The impetus in the equity/crude move has waned into European hours. On the flow side, there was a 20K block in the FVJ1 125.50/124.50 risk reversal, which looked to be buying the puts to the sell calls.

• As a reminder, the space weakened on Thursday, with the curve bear steepening as 30s cheapened by ~4.5bp on the day, with disappointing weekly jobless claims data flipping the script back to the weak data = need for deeper fiscal stimulus narrative. Desks suggested that real money accounts stepped in to buy 10s with equities on the defensive as real yields moved higher, although equities did recover into the close. Both 10s and 30s failed to break through their respective cycle highs. A late block buyer in USH1 helped support the long end into the close. The latest round of 30-Year TIPS supply drew a wide tail, although the takedown metrics weren't nearly as soft.
• Flash Eurozone PMI data will likely set the tone ahead of NY hours on Friday, with the equivalent U.S. readings set to hit later in the day. Elsewhere, Fedspeak from Barkin & Rosengren will cross.