Ticking Lower In Asia

Very light pressure crept back into the Tsy space as we moved through Asia-Pac trade, T-Notes last -0-07 at 132-12+, tapping fresh session lows into European hours. Cash Tsys now running unchanged to ~2.0bp cheaper across the curve, with 10s providing the weak point. Little in the way of overt headline flow was apparent, with the USD seeing a light uptick, while equity markets ticked higher in the main. Headlines re: the disbursement of U.S. stimulus checks, which will start to hit as soon as the weekend, were re-aired, this time via Tsy Secretary Yellen, but that was already a known. Eurodollar futures sit unchanged to 1.5 ticks lower through the reds, with overnight flow headlined by ~30K of sales in EDU2

• As a reminder, Thursday saw the curve twist steepen, with 30s cheapening by ~5.5bp on the day. A bid was seen during the European morning before the space backed off, with a fresh round of bids seen in the wake of the release of the ECB's monetary policy decision and accompanying statement, with focus on the short-term boost to the pace of ECB bond buying. The space then backed off as markets set up for 30-Year Tsy supply, adjusted for Verizon's $25bn 9-tranche jumbo issuance and reacted to better than expected weekly initial jobless claims data, while a large TU/FV steepener block was seen in the futures space and equities rallied. Some relief came as the 30-Year auction generated a mere 0.5bp tail, cover marginally softer vs. prev. and a touch below the recent averages, while dealer participation nudged lower and was below the recent averages as direct participation ticked higher. A block buyer of USM1 futures post-auction and Verizon's issuance coming in at the low end of exp. in size terms also provided some support before the space faded again into the close, even as fresh U.S. restrictions on Huawei became apparent.
• PPI data and the flash UoM sentiment survey headline locally during the final NY session of the week.