The risk-on feel to Asia-Pac trade was......>

US TSYS: The risk-on feel to Asia-Pac trade was driven by the regional reaction

to NY mkt moves & a BBG source piece pointing to a $1tn infrastructure plan from

the Trump admin. Still, T-Notes managed to recover from worst levels with

Chinese COVID-19 worry bubbling away (complete with fresh lockdowns in Beijing

and quarantines for travellers from medium and high risk zones upon arrival in

Shanghai), last -0-08+ at 138-15. The cash curve twist steepened, with yields

-0.3bp to +6.6bp, as the longer end was pressured by the prospect of another

bump up in Tsy issuance, if the touted infrastructure plan comes to fruition.

- Another very healthy Asia session for T-Note volumes, > 157K into Europe.

- On the MonPol front, late Monday saw San Francisco Fed President Daly note

that "you can think of yield curve control as a little helper... but if we have

very robust forward guidance then a lot of that movement in rates at the short

end and even at the longer end, that gets done without having to go to yield

curve control."

- Focus Tuesday turns to the delivery of Fed Chair Powell's semi-annual monetary

policy report, an address from Fed Vice Chair Clarida & U.S. retail sales data.