T-Notes tick higher in early Asia-Pac.......>

US TSYS: T-Notes tick higher in early Asia-Pac trade, as e-mini's look through

yesterday's lows. Contract +0-04+ at 138-22 after it recovered from worst levels

on Weds as crude & equities finished lower. The curve steepened on Wednesday,

driven by a quarterly Tsy re-funding announcement that noted that "while the

initial increases in financing related to the COVID-19 outbreak response were

focused on Treasury bills, Treasury expects to begin to shift financing from

bills to longer-dated tenors over the coming quarters. In light of the

substantial increase in borrowing needs, Treasury plans to increase its

long-term issuance as a prudent means of managing its maturity profile and

limiting potential future issuance volatility." This resulted in larger than

expected nominal issuance sizes across the longer end of the curve (including

the new 20-Year paper). Long end swaps outperformed Tsys on the news.

- Active multi-tranche IG issuance added further pressure to the longer end.

- Eurodollar futures last sit unchanged to +1.0 through the reds.

- Asia-Pac activity will likely be dominated by Japanese participants' take on

recent goings on as they re-assess matters after the long local holiday weekend