A sedate Asia session for Tsys, with........>

US TSYS: A sedate Asia session for Tsys, with e-minis pushing through

yesterday's highs on the back of solid enough U.S. tech earnings, spillover from

NY trade and a bid in crude, while little Tsy market reaction was seen on the

back of U.S. President Tump's latest round of Chinese sabre rattling, nor on the

back of the Chinese PMI data. T-Notes last +0-03+ at 139-02+, yields 0.8-1.8bp

richer across the curve, 7s outperform at the margin, with swap spreads

marginally mixed, but little changed.

- To recap, the Fed left the Fed funds target range unch., with no dissents

(10-0), the IOER also unch. (despite a fair few looking for a nudge higher) &

the Fed stressed its ongoing commitment to limitless QE. Elsewhere, our policy

team highlighted that Chair Powell is readying new credit facilities & vowed to

use the full range of tools to combat the COVID-19 slump.

- Eurodollar futures unchanged to 1.0 tick lower through the reds, EDM0 & U0 saw

a couple of small sell clips emerge in Asia.

- A reminder that month-end extensions are notable, while rebalancing estimates

favour flows into bonds and out of equities.