A quiet start to Asia-Pac trade for.........>

US TSYS: A quiet start to Asia-Pac trade for T-Notes, last +0-01 at 139-08.

- T-Notes edged higher on Wednesday, with the curve bull flattening, as the

Sino-U.S. sabre rattling continued (via tweets from President Trump & source

reports in the Chinese media), in addition to extensions of U.S. trade

protectionism.

- Before that, the space drew support from Fed Chair Powell's initial gloomy

economic outlook, before easing as he pushed back on the idea of negative

interest rates (while President Trump continued to note that he is in favour of

such policy).

- The rally in the long end resulted in a 0.8bp tail at the 30-Year auction,

with little movement in the cover ratio and takedown metrics.

- Elsewhere, David Tepper was the second heavyweight to provide a fairly

downbeat outlook for the equity market, which may have fed into the bid for

Tsys.

- Eurodollar futures sit unchanged to +0.5 through the reds.