T-Notes print just shy of best levels as....>

US TSYS: T-Notes print just shy of best levels as we move towards European

hours, +0-14+ at 129-02+. Cash Tsys remain closed in Asia-Pac hours owing to the

ongoing Japanese holidays (the normal schedule will resume on Monday). Risk-off

flows supported the complex overnight. The catalyst behind the move was a U.S.

strike on a handful of Iranian-linked personnel in Iraq, including Qasem

Soleimani, an Iranian Major general in the IRGC & commander of its Quds Force,

who died at the scene. The IRGC vowed "vigorous revenge" against the attack. The

move took its time to fully filter through into markets, but accelerated after

Soleimani was identified as the target, and confirmed as dead. There was little

in the way of notable options activity seen overnight, with the larger clips

observed in futures, paying during the rally. Eurodollar futures print 1.5-7.0

ticks higher through the reds. Selling of the EDH0M0U0 fly & flattener interest

in the EDH1H2 spread provided the highlights on the flow side in Asia hours.

- The Fed's Dec meeting minutes & m'fing ISM survey are due for release on

Friday, as is construction spending data. Fedspeak also returns with Brainard,

Barkin, Evans, Kaplan & Daly all due up