FOMC Eyed

T-Notes print 0-01 lower after the re-open, last dealing at 131-29+, hovering around late NY levels. Eurodollar futures are unchanged to 1.0 tick higher through the reds, with the whites outperforming, aided by the previously flagged round of EDZ1 buying, which saw 20K lifted on screen after the re-open.

• A reminder that the curve steepened a little on Tuesday, with 20s providing the weak point, cheapening by ~2.5bp come the bell. Ranges were tight ahead of Wednesday's FOMC decision. Concession ahead of 20-Year Tsy supply unwound the early NY bid, which stemmed from softer than expected U.S. retail sales data. The dip resulted in a particularly well received round of supply, stopping through WI by 2.0bp. The cover ratio seen at the auction moved higher vs. prev., while dealer participation slid comfortably below the recent averages. This provided a fresh bid, before some weakness crept back into the long end ahead of the bell.
• The following rounds of flow were observed during the NY session, a TY/WN block flattener was seen ahead of the bidding deadline for the aforementioned round of 20-Year supply (8,069 TY vs. 2,000 WN), while the FVM1 123.50/122.50 put spread saw a 12K bought on screen. Eurodollar futures flow saw a 20K block buyer of EDZ5, which came in the wake of 2x 20K block sales in recent weeks and looked to be short cover.
• There is nothing in the way of overt tier 1 risk events slated for Asia-Pac hours on Wednesday, as markets look to Wednesday's FOMC decision.