Tight Re-Open After Notable Move Lower

T-Notes last +0-04+ at 137-18+, sticking to a tight range from the re-open, after going out just off of worst levels on Tuesday as the curve bear steepened.

• The fiscal dynamic in DC took some positive turns on Tuesday, although the initial support package being touted is some way shy of the Democrats previously outlined acceptable level. Bi-partisan work is underway and there is potential for a further fresh round of stimulus to be deployed when President-elect Biden assumes office (pending the usual approval channels of course).
• A strong m'fing ISM reading (albeit a touch shy of exp.) added further fuel to the fire. 30s cheapened by a little over 10bp come the close, with 10s ands 30s moving back towards there recent highs in yield terms. 10-Year BEIs registered fresh YtD highs in the process.
• Fresh all-time highs for equities were also seen, although that particular move faded from extremes.
• Volumes were more than healthy on the day.
• There is little in the way of true tier 1 risk events slated for Asia-Pac hours on Wednesday.