Tight In Asia After Wednesday's Bull Flattening

TYZ1 in a narrow 0-05 range overnight, last +0-03 at 130-17+, after a limited look above Wednesday's best levels. The curve has seen some very modest twist flattening, with benchmark yields last -/+0.5bp on the day. Reports re: Japanese fiscal matters have helped the space away from overnight highs, but broader macro headline flow was light in Asia-Pac hours.

• The curve bull flattened on Wednesday, with 2s 2bp richer on the day, while 30s firmed by ~5bp come the close. A block buyer of FV futures (+10K) helped the space to perform into the bell after the latest 20-Year auction provided a bit of a wobble. In terms of auction specifics, we saw a 1.4bp tail, although the cover ratio ticked up vs. the prev., printing in line with its recent average, while dealer takedown nudged incrementally higher, printing a shade above its own recent average. The space was able to shake off a heavy day of $IG issuance. Local data & Fedspeak provided no real impetus. Elsewhere, in the race to become Fed Chair, the White House pointed to the likelihood of a decision coming before Thanksgiving, slightly further out than the 4-day horizon provided by President Biden on Tuesday, but in line with exp. flagged by some source reports that hit on Tuesday.
• Thursday's U.S. docket will be headlined by weekly jobless claims & regional Fed economic activity indicators, in addition to Fedspeak from Williams, Bostic, Evans & Daly. On the supply front, we will see a 10-Year TIPS auction and the end of month supply announcement from the Tsy.