T-Notes hold a narrow range to start the....>

US TSYS: T-Notes hold a narrow range to start the Asia-Pac session, last

unchanged at 137-25+, after going out just off worst levels on Thursday. The

cash space's recent run of bear steepening continued on Thursday, with 10-Year

yields and the 5-/30-Year yield spread breaking out of and closing above the

recent ranges. The post ECB impetus from the German Bund curve and prospects of

deeper U.S. fiscal stimulus (N.B. President Trump has just signed an executive

order to expedite infrastructure spending) gave the aforementioned Tsy metrics

the jolt that they needed to break through their recent resistance points.

- Delta hedging in the swap space likely exacerbated the move, with longer dated

swap spreads widening a touch on the day.

- There were also some supply considerations to help drive the move, with the

Tsy's 3-, 10- & 30-Year auction cycle announcements, as well as some focus on a

potential German 30-Year syndication.

- NFPs headline Friday after Thursday's weekly claims data showed a continued

moderation in the number of new claimants (albeit still elevated), although

continuing claims showed an unexpected uptick.