T-Notes +0-01 at 128-21 in early Asia.......>

US TSYS: T-Notes +0-01 at 128-21 in early Asia trade.

- Contract finished the first session of 2020 higher, albeit back from best

levels, unwinding early weakness to turn bid into NY hours. This extended

through the NY morning, with talk that risk-parity funds drove the bid. Sources

reported central bank sales in the short end, two-way in intermediates to long

end, with bank buying in the long end towards the tail end of the session.

- Curve bull flattened on the day.

- Focus continued to fall on matters in the Middle East, with the potential for

a "pre-emptive strike" vs. Iranian militia touted by U.S. Defence Sec. Esper.

The NY/Asia crossover saw RTRS note that "Three Katyusha rockets fell on Baghdad

International Airport. The rockets landed near the air cargo terminal, burning

two vehicles and injuring several citizens."

- The Fed's Dec meeting minutes & m'fing ISM survey are due for release on

Friday, as is construction spending. Fedspeak also returns with Brainard,

Barkin, Evans, Kaplan & Daly all due up.