Asia Assesses Another Strong Auction

T-Notes quiet at the re-open, last +0-02 at 136-26+.

• Wednesday saw T-Notes recover from intraday cheaps during NY trade, with a very strong 30-Year Tsy auction adding to the impetus later in the day (and also adding to the strong 10-Year auction seen on Tuesday), before the contract finished a little shy of best levels. In terms of auction specifics, 30-Year supply stopped through WI by 1.4bp, with above recent avg. cover as direct and indirect participation moved higher, allowing dealer participation to crater to well below recent average levels. The curve bull flattened, with 30s richening by 5.5bp on the day.
• Political matters in DC continued to garner attention as the House voted to impeach President Trump for the second time in his term. Senate Majority Leader McConnell told other GOP senators that he hasn't reached a decision on whether he'll vote to impeach Trump, while he rejected a call by Senate Democrat Leader Schumer re: convening an emergency session to quickly start such proceedings. Political tensions in Europe, namely in Italy, also drew attention.
• Elsewhere, Fedspeak (including Brainard & Clarida) continued to push the central message, with nothing in the way of urgency flagged re: the prospect of a tapering discussion, while Fed's Clarida noted that there will not be a rate hike until the U.S. sees inflation of at least 2.0% for a year, per BBG.
• Chinese trade balance data headlines the docket during Thursday's Asia-Pacific session.