T-Notes have ticked higher in early Asia....>

US TSYS: T-Notes have ticked higher in early Asia trade, market likely

disappointed with the lack of clarity re: a fiscal package from the Trump

administration. House Speaker Pelosi has started prelim talks with the White

House, but the Dems are set to push on with their own plan.

- T-Notes last -0-04 at 137-16, 0-09 off the lows, after going out near the lows

Tuesday, as yields finished notably cheaper across the curve, albeit still at

historically suppressed levels.

- Price action was choppy Tuesday, headline driven, with a focus on the U.S.

fiscal plan and Xi's visit to virus ground zero Wuhan keeping a lid on the Tsy

space, as the major U.S. equity indices ultimately added over 4.0% apiece after

Monday's sharp sell off.

- That being said, virus matters continue to garner attention; healthcare

officials noted that the U.S. is beyond coronavirus containment in some areas,

while New York created a containment zone in the suburb of New Rochelle.

- 3-Year supply saw a 2.7bp tail, the widest since 2009, as the recent richening

and vol limited demand.