T-Notes sit just off best levels ahead of...>

US TSYS: T-Notes sit just off best levels ahead of London hours, +0-06+ at

130-05 on the back of a headline light Asia session, with bull flattening the

theme in cash trade and no real flow of note observed.

- Hard to pen the exact drivers for the uptick. There was perhaps some regional

reaction to U.S. political news re: a majority of the House supporting

impeachment, although the Senate will almost certainly reject any motion that

comes to its floor, so this changes little re: the bigger picture. Elsewhere, a

re-run of some headlines relating to U.S. sanctions on China re: Iranian crude

got very little attention from clients & was well digested on Weds. Also worth

noting that it could have been regional players looking to fade yday's sell-off.

- Fed non-voter Kaplan's latest address didn't provide any real shocks ahead of

a plethora of Fedspeak today. He believes that the current MonPol settings are

"on the margin of being a little accommodative." He deems himself agnostic on

the need for further cuts, noting that he is keeping an open mind on the issue.

- On the plumbing front, worth reminding that the NY Fed upsized the upcoming

o'night repo ops to $100bn (prev. $75bn) & 14-day ops to $60bn (prev. $30bn).