Steady

T-Notes -0-02 at the re-open, hovering around late NY levels.

• Trade was particularly muted on Thursday, with a lack of meaningful news and market flow evident. The cash Tsy curve twist flattened, with the benchmarks out to 10 years cheapening by ~1.0bp, while longer dated paper richened by a similar amount. A solid round of 7-Year Tsy supply and a block buy of FVU1 (+9,000) lifted the space on a couple of separate occasions during NY trade, with some modest cheapening back towards the European lows into the close.
• In terms of auction specifics the latest round of 7-Year supply stopped through WI by 0.3bp with the cover ratio little changed vs. the prev. auction, hovering a touch above the recent average, while dealer takedown slid further below the recent average.
• President Biden signed off on the infrastructure compromise struck by the bipartisan group on the Hill, although key Democratic Senator Manchin deemed the use of reconciliation procedures to force the package through as "inevitable."
• Fedspeak saw a broad affirmation of known, existing views from the raft of speakers. Ex-NY Fed President Dudley stressed that markets shouldn't pay too much attention to any one regional Fed President, as he outlined his view, suggesting that the Fed will be "pretty patient here."
• The Asia-Pac session is bereft of any tier 1 event risk. Meanwhile, Friday's U.S. docket will be headlined by May's PCE data and 4 Fed speakers.