T-Notes Tight After Curve Retraced From Flats In NY Hours

T-Notes tight in early Asia-Pac hours, holding a very narrow 0-01+ range, last unchanged at 140-05.

• This comes after the space reversed off richest levels in NY hours, paring a chunk of the sharp bull flattening that was witnessed earlier in the day. Still the curve was a touch flatter come the bell.
• The pullback from extremes was largely driven by positive rhetoric from senior political figures on the Hill re: the prospects of a fiscal relief deal. However, no firm commitments have been made, with clear divergences still evident and the Senate now adjourned for the weekend.
• A kick higher in equities surrounding the U.S. unwinding its advisory on avoiding international travel also provided some pressure for the space, although country-specific levels of travel advice will be in play.
• Elsewhere, Fed's Barkin expressed his caution re: the economy, while Fed's Kaplan reaffirmed his scepticism surrounding yield curve control, although he did stress that he is keeping an open mind on the matter.• Chinese trade data headlines in Asia-Pac hours.