T-Notes edged away from Tuesday's worst.....>

US TSYS: T-Notes edged away from Tuesday's worst levels at the re-open, last

-0-04 vs. settlement at 128-09+.

- Contract went out near worst levels on Tuesday, despite a mid-session bounce,

with the curve steepening in a shortened cash session. Large TYG0 129.00/129.50,

129.00/130.00 & 129.50/130.00 call spread selling aided the downward pressure in

thin holiday markets (although some pointed to an account working out of one

existing long TYG0 129.00/130.00 call spread position as part of the flow).

- Pension rebalancing/year-end flow also remained in vogue, with focus also on a

Trump tweet noting that he "will be signing our very large and comprehensive

Phase One Trade Deal with China on January 15. The ceremony will take place at

the White House. High level representatives of China will be present. At a later

date I will be going to Beijing where talks will begin on Phase Two!"

- Eurodollar futures unchanged to 2.5 ticks lower through the reds.

- Cash Tsys will be closed in Asia-Pac hours, owing to a Japanese holiday.