A quiet Asia-Pac session, with activity.....>

US TSYS: A quiet Asia-Pac session, with activity limited & news flow light. This

left participants assessing the state of U.S.-Iran tensions (with a couple of

rockets dropping into Baghdad's green zone yesterday evening), as well as a

headline Chinese CPI print that was a touch softer than exp., but still

elevated, as headline dynamics continue to centre on pork prices. T-Notes held

to a 0-04+ tick range, last +0-03 at 128-27+. Yields 0.6-2.6bp lower across the

curve, bull flattening. Eurodollar futs +0.5-2.0 ticks thru reds.

- Flow wise, the FVH0 118.25p/119.25c risk reversal saw 15.0K blocked at 0-00,

buying puts/selling calls. There was also 4.0K clips sold in both the TYH0

129.50 & 130.00 calls. Elsewhere, Eurodollar call ladders remained in vogue,

with 20.0K of the EDH1 98.500/98.750/98.875 call ladder lifted.

- Also worth reminding that cash 10s experienced a ~17bp intraday range on

Wednesday, a 99th percentile move when using the last 5 years' worth of daily

trading data.

- Focus Thursday moves to Fedspeak, with Clarida, Williams, Kashkari (x2),

Barkin, Evans & Bullard all due. 30-Year supply also slated.