A very sedate pre-FOMC Asia-Pac session.....>

US TSYS: A very sedate pre-FOMC Asia-Pac session for the space. Participants

looked through Chinese PMI data & the most recent geopolitical developments,

namely another missile launch from North Korea & a Washington Post report which

suggested that "the Trump admin is set to announce later this week that it will

once again waive five different nuclear-related sanctions on Iran." T-Notes last

127-13, +0-02 on the day, with yields 0.4-1.0bp lower across the curve.

- Eurodollars saw a flurry of activity late Tuesday, with a ~18.4K block of

EDM0Z0 crossing at -0.070, in what appeared to be a steepener play, while

options saw 50.0K of the EDU9 97.75 puts blocked vs. EDU9 futures over several

clips late in the day. The strip last trades +0.5-1.5 ticks through the reds.

- Focus is on the FOMC's latest MonPol decision, with most looking for Powell &

co. to conduct a 25bp "insurance" rate cut. Assuming the base line case is

delivered, focus will quickly move to rhetoric surrounding the decision. Please

get in touch if you would like to read our FOMC preview, which includes a

summary of 30 sell-side previews. Elsewhere the quarterly Tsy refunding

announcement will be eyed, as will the U.S.-China trade talks.