The Tsy curve saw some light flattening.....>

US TSYS: The Tsy curve saw some light flattening on Thursday, with T-Notes

coiling in a tight range, a theme that has continued in early electronic trade

in Asia, with the contract +0-02 last, at 139-02+.

- Thursday saw the space draw support from the aforementioned Nikkei piece re:

potential BoJ moves next week, after the marginally better than expected weekly

initial jobless claims print (that still topped 4.4mn, but represented a further

moderation from the recent record highs) allowed T-Notes to make New York

session lows.

- Space drew further support later in the session as the FT noted that "a

potential antiviral drug for the coronavirus has flopped in its first randomised

clinical trial, disappointing scientists and investors who had high hopes for

remdesivir, according to draft documents published accidentally by the World

Health Organization and seen by the Financial Times." Although issues re:

testing methods and the like were noted by Gilead (which resulted in an early

termination of the trial), and limited the move, as did corporate supply.

- Eurodollar futures sit unchanged to +0.5 through the reds.