T-Notes Rangebound As Senate Reconvenes

T-Notes still within a narrow 0-03 range after slowly edging higher from the off. The contract last trades +0-01+ at 137-08. Cash Tsy yields unch. to 0.4bp richer across the curve. Eurodollar futures unch. to +0.5 tick through the reds, with 10-ear yields sitting above 1.00%. The fiscal dynamic in the U.S. provides interest after the Democrats took control of the Senate, in the wake of yesterday's Georgia runoff elections. Meanwhile, the Senate reconvened on the Hill, with Senate Majority leader McConnell noting that the upper chamber "will not be intimidated (...) by thugs, mobs or threats" and will "certify the winner of the 2020 presidential election."

• JGB futures have wavered and trade below opening levels. The contract now sits at 151.85, 8 ticks shy of last settlement. Cash JGB yields are mixed with a degree of light flattening creeping in. Local press suggested that PM Suga may declare emergency in Tokyo and three surrounding prefectures today, with his presser reportedly scheduled for this evening. On the data front, Japanese wage data suggested that earnings fell more than exp. in Nov. Coming up later today we have an auction for 6-Month Bills.
• Australian YM sits -1.0, while XM has climbed and last trades unch. The space may have drawn support from Japanese demand, owing to mre attractive FX-hedged entry points. Cash ACGB yields are unch. to +1.3bp across the curve. Bills last seen unch. to -2 ticks through the reds. Australian building approvals rose faster than forecast in Nov, while trade surplus contracted more than exp.