T-Notes drifted lower early in Asia,........>

US TSYS: T-Notes drifted lower early in Asia, consolidating Monday's late pull

back from highs. That leaves the contract -0-09+ at 131-02 as we head into

European hours. Broader flow was limited, with cash Tsys closed in Asia hours,

on the back of a Japanese holiday. A move lower in China's daily new Coronavirus

case count (with new cases in Hubei province moderating to lowest levels since

the start of Feb), as well as a continued uptick in recovery #s evident,

outweighed the uptick in the death toll (from a market perspective), as

participants focused on the good points in the daily counts. Upticks in U.S.

equity futures, to fresh all-time highs, also kept some pressure on T-Notes.

- Elsewhere, U.S. Pres Trump lamented Fed policy under Powell (nothing new),

markets were not phased. Also, worth flagging some decent upticks in China's

onshore rebar & iron ore markets, which would have helped risk appetite. The

question is, was this due to hopes re: a rebound in Chinese econ activity

(questionable owing to the disjointed nature at present), or on stimulus hopes?

- Fed Chair Powell's semi-annual testimony headlines local docket Tues, Fedspeak

also due from Quarles, Daly, Kashkari & Bullard. We will also see 3-Year supply.