Off Of Thursdays Lows But Still Heavy, Equities Eyed

T-Notes have edged off of their Thursday lows, although the aforementioned move in the e-mini space has been much more dramatic, given the focus on earnings reports from the tech giants. Contract last +0-02+ at 138-15+.

• The space was under pressure on Thursday, as the bear steepening witnessed in Asia-Pac hours extended, aided by the firming of chances of a Biden victory/Blue Wave in some quarters (although betting market pricing remains more hesitant than the likes of FiveThirtyEight's election model re: the pricing of a Blue Wave), with reports suggesting the COVID-19 situation was providing headwinds for the incumbent President in several of the battleground states. 10s and 20s provided the weak points on the curve, with both closing almost 5.0bp cheaper come the bell. Firmer than expected Q3 U.S. GDP data and more favourable than expected weekly jobless claims also helped to pressure the space.
• The record sized 7-Year Note also fed into the dynamic later in the day, tailing by over 1.0bp, with the cover ratio easing to sub average levels and dealer takedown ticking up, coming in above the recent averages.
• On the flow side, a WNZ0 block sale was seen during the NY morning.
• Eyes are on the broader risk dynamic during Asia-Pac hours, given the lack of tier 1 risk events.