Still struggling for a real reason for......>

US TSYS: Still struggling for a real reason for the steepening seen in the Tsy

space at one point in Asia, shorter end has recovered, with longer dated yields

also off extremes, resulting in twist steepening, as opposed to the outright

bear steepening seen earlier. U.S. equity index futs have moved higher, although

that wasn't one-way traffic, as coronavirus headlines dominated. T-Notes away

from lows, last -0-07+ at 132-28+. The fact that new virus deaths in China were

confined to Hubei Province was an incremental positive. The telegraphed fiscal

stimulus out of Hong Kong was another incremental positive, as was the recovery

from lows in Chinese equities. Chatter points to decent selling in cash Tsys in

Asia, with marginally wider swap spreads seen, despite heavy flows touted there.

- Fed's Kaplan failed to add anything new to the debate in a WSJ interview.

- Early block flow seemingly represented unwinding of positions, more recently

we have seen a 20.0K block buyer of the TYK0 131.50/130.50 1x2 put spread.

- Eurodollar futs 1.0-3.5 ticks lower through the reds. Recent block flow has

seen 30.0K of the EDZ0 98.625/99.000 1x2 call spread sold at flat.

- New home sales, 5-Year & 2-Year FRN supply headline today.