T-Notes sit at the top of their.............>

US TSYS: T-Notes sit at the top of their Asia-Pacific range as we head into

London hours, 0-05+ tick range thus far, last -0-00+ at 128-13. Truth be told,

participants struggled for any real impetus amid the holiday backdrop, with

Middle East tensions seemingly de-escalating from Tuesday/Wednesday peaks, while

the space largely looked through the PBoC's RRR cut, which was widely touted.

Small buying flow of TYH0 helped space to fresh highs in recent trade.

- Cash Tsys remain closed until European hours owing to the aforementioned

Japanese holiday.

- Eurodollar futures +0.5 to -1.0 ticks through the reds.

- Worth recapping Tuesday's flow. T-Notes went out near worst levels on Tuesday,

despite a mid-session bounce, driven by real money accounts (per sources), with

the curve steepening in a shortened cash session. Large TYG0 129.00/129.50,

129.00/130.00 & 129.50/130.00 call spread selling aided the downward pressure in

thin holiday markets (although some pointed to an account working out of one

existing long TYG0 129.00/130.00 call spread position as part of the flow).

- Final U.S. m'fing PMI data and weekly jobless claims will be released today.