Off Best Levels

TYH2 has pulled back from best levels, last +0-05 at 130-24, while cash Tsys run 0.5bp cheaper to ~2.0bp richer across the curve (2s have slipped into negative territory, while the belly continues to outperform). The Senate’s approval of a stopgap funding deal to prevent a government shutdown has probably helped the space off of highs (even if it just kicks the can down the road), with markets starting to fade the initial knee-jerk bump higher which was seen on the back of a handful of Omicron cases springing up across the U.S. (a reminder that the mortality threat of the new COVID strain remains unknown, although markets remain jittery around related headlines).