T-Notes hold a tight range in early Asia,...>

US TSYS: T-Notes hold a tight range in early Asia, -0-01 at 139-01+, after the

contract ticked back from highs into the bell on Wednesday. Solid bidding

metrics at the first 20-Yr auction in decades helped flatten the curve, as

T-Notes tagged fresh intraday highs post-auction & yields richened, despite the

presence of a 0.8bp tail. Concession was evident ahead of the auction, with a

Comcast multi-tranche deal also adding weight. Minutes of the Fed's April

meeting revealed "a few participants also noted that the B/S could be used to

reinforce the Committee's fwd guidance regarding the path of the FFR through

purchases of Tsy securities on a scale necessary to keep Tsy yields at short to

medium-term maturities capped at specified levels for a period of time." This

accompanied some broader calls for deeper fwd guidance.

- The minutes also noted "there appeared to be ltd risk that the FFR would move

below the tgt range, as the FHLB - the dominant lenders in the federal funds

market - can earn a zero rate on balances maintained in their a/c at the Fed."

- Elsewhere, the Senate approved legislation that could ultimately bar many

Chinese firms from listing on U.S. exchanges.