T-Notes edge higher in early Asia-Pac.......>

US TSYS: T-Notes edge higher in early Asia-Pac trade to last print +0-03 at

139-01+, building on the uptick seen in late NY trade, but operating in familiar

territory. The contract drifted lower in the first full session of the week,

with volumes artificially boosted by roll activity. The general risk-on feeling

that we flagged over the first couple of Asia-Pacific sessions of the week

extended into NY trade, although some caution re: Sino-U.S. sabre rattling,

including the threat of impending sanctions and a dose of reality from a top

pharma exec re: COVID-19 vaccine timing took the shine off of things ahead of

the close, with the contract moving away from worst levels.

- Still, the 5-/30-Year yield curve closed at the steepest level seen since the

March vol, bear steepening by over 6.0bp come the bell.

- 2-Year supply saw a 0.2bp tail, solid enough cover ratio (despite the pullback

vs. last month's cover) and uptick in dealer participation, although the bidding

metrics were around recent averages.

- Any Sino-U.S. headline flow will likely be the focal point of the Asia-Pac

session.