T-Notes operate in familiar territory as....>

US TSYS: T-Notes operate in familiar territory as risk aversion spilled over

into Asia-Pac hours, last +0-01+ at 138-29+, on decent enough volume of ~73K,

given the China & Hong Kong holiday. Bulls seem reluctant to force a test of

recent range highs, at least for now, even with broader equity markets trading

on the defensive, perhaps that is a function of the lower liquidity in Asia.

Yields marginally richer across the curve.

- Key tensions evident Wednesday incl., heightened U.S. COVID-19 worry, with

Houston grinding towards its ICU capacity, as well as NY, NJ & CT outlining a

quarantine for arrivals from virus hotspot states, U.S/EU trade matters &

Sino-U.S. sabre rattling. Month-/quarter-end rebal focus & dip in oil markets

may have also supported the move further. The latest 5-Year auction stopped

through WI by 0.6bp, as the cover topped recent avgs & dealer participation

pared back below recent avgs, as both direct & indirect participation picked up.

- Very little to pen re: headline news flow overnight, outside of a BBG source

report pointing to heightened Sino-Indian trade tensions.

- 7-Year supply, weekly claims and durable goods data all due Thursday.