Nearly There

A tight re-open for T-Notes with the contract +0-01 at 137-25+ after a move away from lows into the closing bell on Wednesday. Market is willing to look through a threat from U.S. President Trump towards Iran re: any further strikes on U.S. interests in Iraq.

• 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 Brexit and DC fiscal matters to headline as we move towards Christmas, with the usual low liquidity warnings evident. There is little of note slated for release during Asia-Pac hours, with Thursday set to see the release of the details re: next week's 2-, 5- and 7-Year Tsy supply.