Core FI drew support from a sombre take.....>

US TSYS: Core FI drew support from a sombre take on the prospects of notable

U.S. fiscal stimulus in the immediate term, as well as a coronavirus containment

zone being set up in the NY suburbs. The Democrats & Republicans seem to be at

odds re: the contents of any fiscal package, and this has subsequently weighed

on risk overnight, with Tsys ignoring the bid in oil, which remains well short

of recapturing Friday's closing levels. Biden's strong showing in the latest

round of Democratic primaries did little & was fully discounted by betting

markets in advance. T-Notes well bid as a result, with JPY in the ascendance &

U.S. equity index futures pressured. Contract more than reversed the late

session losses seen Tuesday, last +0-22 at 138-10, easing a touch into European

hours. Yields 9.6-14.4bp richer across the curve, swaps notably lagging cash.

Highlight on the flow side saw 20.0K of the TYJ0 130.50/132.00 call spread

blocked, market source suggested seller. May represent a profit take from legs

of the TYJ0 130.50/131.50/132.00 call structure blocked in Asia late Jan.

- Eurodollar futures print 2.0-3.5 ticks higher through the reds.

- CPI & real earnings data, as well as 10-Year supply headline Wednesday.