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."