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T-Notes in a 0-04 tick range in Asia,.......>

US TSYS: T-Notes in a 0-04 tick range in Asia, last -0-02 at 129-03, but volumes
were much larger than the Asia avgs in both cash & futures products as the curve
twist steepened (5s30s ~4.0bp steeper) after confirmation that the U.S. Tsy will
issue 20-Year bonds in H120, following input from market participants. Contract
tested early lows after solid to strong Chinese economic activity/GDP data, but
couldn't force a break. Focus on some early Asia block flow which initially
looked like TY/US & TY/WN mis-weighted futures steepeners when looking at
prices, but various sources pointed to a fly structure being in play, selling
USH0, based on the aforementioned 20-Year issuance announcement. Elsewhere,
there looked to be block sellers of TYG0 129.50 (20K) & TYH0 131.00 (30K) calls
& a ~10.5K screen seller of the TYG0 129.50/TYH0 130.00 call spread, covered.
- Judy Shelton & Christopher Waller's nominations to the Fed's Board of
Governors was formalised. Although social media commentary noted: "Judy Shelton
is ineligible to join the Board of Governors. Governors must come from separate
federal reserve districts. Lael Brainard already represents the Richmond
district. Some of you will remember that this is how Peter Diamond was blocked."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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