Tight Overnight

T-Notes operated in a narrow 0-02+ range during Asia-Pac hours, sticking to the upper end of Wednesday's range, after the late richening that was seen during NY hours. Macro headline flow was light, with fresh highs for S&P 500 e-minis keeping a lid on the space. That contract last prints +0-01+ at 137-00+. Cash Tsys trade at virtually unchanged levels across the curve, with a ~6.9K block seller of the TYG1 137.00 puts providing the highlight on the flow front.

• As a reminder, the space reversed the early cheapening seen on Wednesday, firming into the bell, with cash Tsys richening by less than 1.0bp across the curve, while the S&P 500 tagged fresh all-time highs as markets welcomed the inauguration of President Biden, although some members of Biden's team sounded cautious re: the COVID outlook. Some light pressure did creep into the space around the latest 20-Year Tsy auction, which saw a 1.4bp tail, while the cover ratio softened to below average levels and dealer takedown held steady, just above the recent averages.
• Eurodollar futures are virtually unchanged through the reds, with a ~12K seller of EDM1 seen, with activity in that space otherwise light during Asia-Pac hours.
• Weekly claims data and the Treasury's announcement re: end of month issuance headline locally on Thursday.