The Two Fs: Fiscal & Fed

T-Notes -0-01 at 139-21+, holding a 0-01 range since the re-open, with
traders looking to U.S. fiscal matters and Wednesday's FOMC decision
(please click here to see our preview of the latter) given the limited
regional docket evident in Asia-Pac hours.

• A reminder that T-Notes recovered from European morning lows on
  Tuesday, with familiar themes of uncertainty at the fore, finishing NY
  trade at best levels, with the curve bull flattening, even with equities
  recovering from worst levels. Still, 10-Year yields haven't seen a break
  of the well-established recent trading range.
• The latest 7-Year auction was well received, stopping through WI by
  0.6bp, despite the record issuance size and all-time low yields that
  prevailed. The cover ratio was ever so slightly shy of the recent
  averages, with end user demand seeing an uptick, as dealer
  participation moved further away from the recent averages.