TY Futures Flow Grabs The High In Narrow Post-FOMC Trade

T-Notes held to a tight 0-04 range overnight, in limited (at least in range terms) post-FOMC trade, with some early modest cheapening in the Tsy space unwinding, aided by a 13K block buy of TYH1 at 137-17, with the contract last dealing unchanged on the day at that level. Cash Tsys now sit unchanged to ~0.5bp richer across the curve, with headline flow on the light side in Asia-Pac hours. The key takeaway was news from Pfizer & BioNTech, who noted that the results of their studies indicate that their vaccine is effective against both the UK and South African variants of COVID-19.

• JGB futures were tight, sticking to the range witnessed during the overnight session, last -3, with a solid round of 2-Year JGB supply seen. Cash trade has seen some light outperformance for the long end, with the curve flattening a little as a result.
• Australian bond futures also held to a narrow range, with YM unchanged and XM -1.0 ahead of the Sydney close. Most of the focus fell on the launch of a new benchmark round of Aug '32 issuance from QTC.