T-Notes extended beyond Tuesday's lows at...>

US TSYS: T-Notes extended beyond Tuesday's lows at the start of the Asia-Pacific

session, and last deal at worst levels of the day as the major Asia-Pacific

stock indices move higher.

- This follows a move higher in U.S. index futures after the Wall St. bell,

aided by Facebook's engagement trends being better than many feared in its

quarterly earnings report.

- Wells Fargo have suggested that as much as $21bn of U.S. stocks may need to

bought into month end as part of the re-balance, while they suggest that bonds

may witness outflows of $27bn.

- Tsy yields are 0.8-1.1bp higher last, with the curve sitting marginally

steeper.

- The Eurodollar strip has also softened, trading 2.0 to 2.5 ticks lower last.

- U.S. data picks up Wednesday with ADP & the MNI Chicago PMI headlining.

- T-Notes last 118.19, U.S. 10-Year cash Tsy yields last 3.134%.