T-Notes held a tight range in Asia-Pac......>

US TSYS: T-Notes held a tight range in Asia-Pac hours, with a defensive session

for regional equities, as well as U.S. equity index futures, limiting any

losses. Focus still on the outlook for U.S. earnings, yesterday's weak data and

sombre Fedspeak, which drove notable bull flattening on Wednesday Contract last

-0-02 at 139-03, with yields 0.4-1.0bp cheaper across the curve, swaps unchanged

to a touch tighter on the day.

- Worth flagging that the T-Note rally didn't challenge 139-14+, which provides

key resistance and the bull trigger point if broken.

- Volume light at ~60K into Europe.

- Small TYM0/USM0 flattener was blocked overnight, same DV01 and direction as a

trade lodged yesterday in Asia hours.

- Eurodollar futures running unchanged to -1.0 through the reds.

- Focus today moves to the latest round of initial jobless claims data, with

housing starts and Philly Fed data also due. Also set to see a raft of Fedspeak,

with Williams, Bullard, Bostic, Daly & Barkin all due up.