T-Notes -0-01+ at 138-27+ in early Asia.....>

US TSYS: T-Notes -0-01+ at 138-27+ in early Asia trade, holding a tight range. A

recovery in risk sentiment into the NY close pressed T-Notes to fresh session

lows, as focus fell on the latest wind back of some of the restrictions placed

on banks under the Volcker rule. The space hugged a tight range for much of the

day, with the late dip resulting in curves finishing mixed on the day, marginal

steepening ins 2s10s, light flattening in 5s30s. Elsewhere, the COVID-19

situation continues to bubble, with Texas and Florida going no further re:

re-opening for now, as Houston hit its ICU capacity. U.S. President Trump hasn't

faired well in the latest round of polling, trailing Democratic challenger Biden

across key battleground states, with Biden enjoying some very wide margins at

present. Durable goods data was stronger than expected, but didn't fully reverse

the fall observed in the previous month, while initial jobless claims were a

touch higher than exp., but still a little lower than last week's (although

broader COVID-19 worry may present some hurdles down the line).

- The 7-Year auction stopped through WI by 0.5bp, with around average cover and

takedown metrics.