A lingering feeling of uncertainty.....>

BOND SUMMARY: A lingering feeling of uncertainty supported core FI during Asia

hours. T-Notes last +0-03+ at 129-29+, yields 0.9-1.9bp richer across the curve,

with the front end outperforming at the margin, aided by a strong 2-Year auction

and oversubscribed Fed POMO operation in the bill space on Tuesday. On the flow

side, it is worth noting that we saw a 20.0K buyer of the TYZ9 133.00 calls on

screen. Eurodllar futures +0.5-2.5 ticks through the reds.

- Aussie bonds were also bid, aided by the broader risk backdrop. There was some

focus on comments from Tsy Sec Kennedy who noted that MonPol remains a better

lever to pull to generate growth vs. fiscal stimulus, given the current

conditions. Kennedy pointed to the potential to use temporary fiscal responses

in times of crisis, but warned of a need to be cautious re: consequences of such

actions. YM +4.0, XM +6.5. Bills 1-4 ticks higher through the reds.

- A pretty limited session for JGB futures after yesterday's holiday, +4 ticks

on the day. The super-long end is underperforming ahead of tomorrow's 20-Year

JGB supply, resulting in some light twist steepening of the curve.