Risk Appetite Cools As Stimulus Deal Odds Dwindle

Tsy futures were modestly higher across the curve, near session highs after trading weaker in the first half. A modest early risk-on unwound later in the session as Trump admin officials telegraphed chances of stimulus deal before election is evaporating. Really decent volumes by midmorning (TYZ>625k by 1030ET) dried up in the second half w/ TYZ just over 1.06M after the bell.

• Chances of a reaching a stimulus deal before the election evaporated precipitously in the second half. Though House Speaker Nancy Pelosi held hopes of reaching a deal "if Trump backs it", headlines quoting Tsy Sec Mnuchin that Pelosi has "dug in" with "significant differences" while Trump not wanting to "bail out Democratic states" weighed on risk appetite ahead the weekend.
• Otherwise trade action was relatively subdued the day after the final Presidential debate (no fireworks) with little data to trade off of (IHS MARKIT PMI's), while Fed-speak disappeared ahead of the blackout that kicks off at midnight tonight through Nov 7.
• The 2-Yr yield is up 0bps at 0.1534%, 5-Yr is down 0.6bps at 0.3685%, 10-Yr is down 1.8bps at 0.8379%, and 30-Yr is down 3.5bps at 1.641%.