No Reaction To VP Debate In Limited Overnight Trade

T-Notes held to a 0-03 range overnight, +0-02 at 138-25 last, as yields sit unchanged to 1.2bp richer across the cash Tsy curve. It is fair to say the Pence-Harris debate was somewhat bland, as we learnt nothing new, with a flow related pop higher in e-minis allowing T-Notes to edge away from best levels at one point.

• U.S. President Trump's proposals re: piecemeal fiscal stimulus and the growing prospect of Democratic stimulus ideas coming to fruition after the November election (per betting markets) steepened the curve on Wednesday, as yields moved higher, after Trump's fiscal rug pull provided support for the space into Tuesday's close. 10-Year Tsy supply was on the screws, with the cover ratio and takedown metrics showing very little deviation vs. their recent averages, albeit with an uptick in cover and downtick in dealer participation vs. the previous 10-Year offering. Fedspeak, including the minutes from the central bank's most recent monetary policy decision, had little impact on the space.
• On the flowside, overnight we saw upside activity via a 3.0K lift in the TYZ0 140.00/141.00 call spread.
• Weekly claims data, 30-Year Tsy supply and Fedspeak from George, Rosengren & Bostic headline locally on Thursday.