Steady Re-Open

T-Notes unchanged at typing, printing 138-01.The Moderna COVD vaccine trial news (which was flagged and widely discussed during Monday's Asia-Pac session) bettered last week's offering from Pfizer, resulting in further risk-on price action during early NY hours, although moves faded from extremes, given the cloudier outlook for fiscal policy on the back of the developments (and given the already the continued holdup on the latter in DC).

• T-Notes went out around mid-range, with the curve twist steepening.
• We heard from Fed Vice Chair Clarida who suggested that the FOMC chose a one-year inflation memory in its new operating framework, and laid out several cases where policy makers could delay the interest-rate liftoff. While Clarida included purchases of government assets as part of the Fed's toolkit to keep inflation at desired levels, he did not indicate in his remarks whether he believed any changes in those purchases warranted changes. Asked about yield curve control, Clarida said, "I think it is still in the toolkit. Right now it is not something that we're considering."
• This came after J.P.Morgan shifted their Fed view. They now look for the central bank to extend the maturity of its monthly purchases of US Tsys at the December FOMC meeting.