Tight Re-Open After More Weakness

A narrow re-open for T-Notes, sitting just above Thursday's lows, -0-01+ at 136-29. This comes after the weakness in the space continued during Thursday trade, with 10s representing the softest point on the curve, with that particular benchmark ending the day 4.5bp cheaper as equities rallied to fresh all-time highs.

• Most of the day's Fedspeak touched on the potential for tapering of the central bank's asset purchase schemes, in one way or another, with various views given. While some stressed that it is too soon to ponder such moves the NY-Asia crossover saw Bostic note that the Fed may taper earlier than expected N.B. this comes after a recent RTRS interview saw Bostic note that he is "hopeful that in fairly short order we can start to recalibrate" Tsy and MBS purchases.
• Meanwhile, there was a steady round of resignations from the Trump admin, with one of his cabinet vacating their post, while senior Democrats called for Trump to be forced out of his role, and some momentum behind calls for impeachment also grew.
• A stronger than expected ISM services survey was mostly driven by an uptick in the supplier delivery time component, which was likely skewed higher by the COVID-19 situation as opposed to economic strength. Elsewhere, the release saw the employment sub-metric move into contractionary territory.
• On the flow side, block trade saw some adjustment of existing TY downside exposure, via TYG1 137.00 and TYH1 136.50 puts
• Friday's Asia-Pac docket is limited, so broader headline and market flow will be eyed.