The Two Fs: Fiscal & FOMC

U.S. fiscal impasse and the upcoming FOMC decision (see our full
preview for further details re: the latter here) continue to garner the
attention, with broader headline flow light in Asia-Pac hours. That has left
T-Notes stuck in a 0-02 range, last -0-01 at 139-21+. Yields are virtually
unchanged across the cash curve, in a low volume Asia session.

• 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, as equities dipped.
  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.