Core FI markets were relatively contained...>

US TSYS: Core FI markets were relatively contained overnight, with equity

markets a little choppy as they dealt with the positive lead from Wall St. and

worry re: Hong Kong, while the PBoC continued to lean against CNY weakness via

its mid-point fixing, albeit with little to no tangible success. That meant it

was a case of another tight overnight range for T-Notes, with the contract last

-0-05 on the day at 138-31. Yields pulled higher into Europe, leaving them

0.4-2.1bp cheaper across the curve, with bear steepening evidence.

- Eurodollar futures sit 0.5 to 1.0 tick lower through the reds.

- A reminder that the latest 5-Year Tsy auction was on the softer side,

generating a 1.3bp tail, along with softer than avg. cover ratio and an uptick

in dealer participation to slightly above avg. levels.

- Jobless claims, durable goods & the PCE series headline on Thurs. We will also

see 7-Year supply & Fedspeak from Williams & Harker. Our latest interview with

Dallas Fed Pres. Kaplan (published late Weds) saw him note that he's leaning

towards further monetary support like YCC & committing to running inflation

above 2%, to support an economic recovery that will take well into '22.