T-Notes & cash Tsys took their time to......>

US TSYS: T-Notes & cash Tsys took their time to react to a sharp sell-off in

U.S. equity index futures from the re-open after news hit that a Huawei

executive was detained in Canada owing to breaches of Iranian sanctions, with

the U.S. seeking her extradition. T-Notes trade through Tuesday's session high,

but shy of best levels as we head into European hours. The belly of the cash

curve has experienced some modest outperformance, with inversion still in play

in the shorter end. Out of the money call buying noted in Tsys, with TYF9 122.00

& 123.50 call activity garnering some attention overnight.

- Front end of the Eurodollar strip coming under some modest pressure following

yesterday's closure. As a reminder 3-Month USD LIBOR set ~2.7bp higher

Wednesday. EDH9 out through the golds trading higher by 1.0 to 5.5 ticks with

the reds/greens leading.

- Focus Thursday falls on re-scheduled ADP data, ahead of Friday's NFP release,

as well as services PMI/ISM surveys & factory/durable goods orders. Fedspeak due

from Bostic. Fed's Powell & Williams to speak in early Asia-Pac hours.

- T-Notes last 120.09, U.S. 10-Year cash Tsy yields last at 2.890%.