A more hawkish RBNZ outlook & a touted......>

US TSYS: A more hawkish RBNZ outlook & a touted sell programme in JGB futures

added pressure to Tsys during Asia-Pac hours on Wednesday. Elsewhere, a downtick

in the daily Coronavirus death toll & a continued slowing of the growth rate of

new cases in China soothed worries (even as the virus continues to spread aboard

the quarantined Japanese ferry).

- T-Notes sit 0-07 lower as a result, hovering above worst levels, with yields

1.3-1.6bp higher across the curve. Small screen selling of the USH0 160.50 puts

was seen overnight, with more recent trade seeing a 20.0K lift of the FVH0

119.00 puts and 10.0K of the TYH0 130.25 puts given, both on screen.

- Worth highlighting our latest exclusive, which noted that "market perceptions

that reserves are more liquid than Treasuries during heavy trading may be at the

heart of why repo markets froze up last year, Federal Reserve Chair Jay Powell

wrote in a letter to Senate Banking Committee Ranking Member Sherrod Brown.

- Eurodollar futures print 0.5-3.0 ticks lower through the reds.

- Fed Chair Powell's second day of testimony on the hill and an address from

Fed's Harker headline Wednesday's docket. We will also see 10-Year supply.