The Iranian response to the U.S. killing....>

US TSYS: The Iranian response to the U.S. killing Soleimani generated a strong

bid for core FI in early Asia-Pac trade, with the IRGC striking a couple of U.S.

installations in Iraq (although no U.S. casualties have been reported by the

U.S. side, despite some propaganda-like claims from the Iranians). T-Notes

+0-12+ at 129-17+ last, after the pullback from highs gathered some steam on

confirmation that there would be no evening comment from U.S. President Trump

(who tweeted "all is well" with some references to U.S. military prowess). He

will speak on Weds morning (Eastern Time), which also suggests that the Iranian

claims re: casualties are false. Pockets of selling were evident through the

latter part of the rally, which many attributed to profit taking from

pre-positioning. Yields sit 3.4-4.4bp lower across the curve at writing. Flow

wise, 3x4 and 2x3 TYGO 130.00/130.50 ratio call spreads were blocked. Also worth

flagging that circuit breakers were triggered in ultra-bond futures overnight.

- Eurodlr futs 1.5-5.0 ticks higher thru reds. 80.0K of the EDH1

98.625/98.875/99.00 broken call ladders were lifted on block, over 2 40.0K clips

& 2 prices. Also, a 5.0K block buyer of the 0EG0 98.875/99.000 1x2 call spread.