Tight Re-Open After Steepening

T-Notes -0-01+ at 138-17, holding a tight range after the contract finished off worst levels on Wednesday.

• Fiscal dynamics drove the space during NY hours, with the curve bear steepening as longer dated yields extended through their recent range tops. As we have mentioned elsewhere, the general rhetoric coming from Democrat leadership and the Trump administration re: the ultimate prospects of a fiscal deal is positive, although most, including House speaker Pelosi, have started to note that the deal may slip to the other side of the election. Hurdles in the Senate remain evident.
• Wednesday's 20-Year auction was solid enough, stopping virtually on the screws, with an in line with average cover ratio, and a slightly below average dealer takedown.
• Eurodollar futures sit unchanged to +0.5 through the reds.
• There is little in the way of tier 1 risk evident on the docket during Asia-Pac hours.