Little to note on the headline front in.....>

US TSYS: Little to note on the headline front in Asia, but continued Sino-U.S.

sabre rattling and Wednesday's negative lead from Wall St. saw the curve bull

flatten (lightly) overnight, with T-Notes holding a tight range. There was

little in the way of reaction on the back of PBoC inaction re: MLF liquidity

measures (most looked for at least a partial rollover of maturing funds and a

looser rates for the facility). Tsy Sec Mnuchin reiterated his view re: a gloomy

short term outlook for the economy, before a bounce back later this year.

- T-Notes last +0-02+ at 139-10, with cash yields 0.4 to 2.2bp richer across the

curve.

- The only real flow of note was in the TYU0 142/143/144 call fly, where paper

paid 0-03 on 1.0K, per market source.

- Just to recap yesterday's 30-Year supply. The rally in the long end of the

curve resulted in a 0.8bp tail at auction, with little movement in the cover

ratio and takedown metrics.

- Initial jobless claims data and Fedspeak from Bostic, Kashkari and Kaplan

headline locally on Thursday.