Restricted Trade In Asia, Fedspeak Eyed

A 0-03+ range in play for T-Notes thus far, with the contract last +0-01 at 133-21, while cash Tsys are flat to 1.0bp richer across the curve. Broader news headlines remain on the light side. Looking to the short end, a 5.0K block seller of the EDZ2/Z4 spread dominated on the flow side on Asia.

• There was a distinct lack of macro headline drivers evident on Wednesday, with the impulse from a steeper German yield curve and higher equities seemingly pressuring the space. That left yields little changed to ~4.5 cheaper across the curve come the bell, with 10s representing the weakest point on the curve. Futures volume was robust, even when the boost from the quarterly rolls was netted off. On the flow side FV (-12.0K, ~$611K DV01), UXY (-4.4K, ~$582K DV01) & US (-3.6K, ~$700K DV01) blocks were seen, aiding the cheapening into 5-Year supply. The auction itself was relatively well received, with a small (0.2bp) tail witnessed, while the cover ratio held steady and dealer takedown ticked below the recent averages.
• Thursday will be headlined by pre-Jackson Hole Fedspeak, with George, Bullard & Kaplan all due to make addresses on CNBC/BBG. Elsewhere, the 2nd Q2 GDP estimate, weekly jobless claims, Kansas City m'fing data and 7-Year supply will be eyed.