Tight In Asia, Plenty Of Points Of Interest Slated for Wednesday

Some screen selling of T-Notes helped the contract to fresh session lows on the back of the stronger than expected Caixin services PMI print, although the contract stuck to the confines of a narrow 0-03+ range in Asia-Pac hours. A bounce in the Hang Seng, reportedly on the back of Chinese state media toning down its rhetoric against the online gaming industry, also applied some modest pressure to the space at the same time that the Chinese data hit. T-Notes last trade -0-00+ at 134-31+ on paltry volume of ~55K. Cash Tsys trade little changed to 1.0bp cheaper across the curve, with very modest bear steepening in play.

• The space stuck to a narrow range on Tuesday, with T-Notes closing around the mid-point of the session, after a brief and limited showing through Monday's highs (although technical resistance at 135-07 remained untested). Cash Tsys finished the day little changed to 1.0bp richer across the curve. Broader volume was muted, with the early rally fading as U.S. equities ticked away from lows and closed higher. Oil futures recovered from lows but were still comfortably lower on the session. Fed Governor Bowman was far less aggressive than Waller re: the labour market, as she noted that it will take time for that area to heal post-COVID-19, while underscoring the idea that more work is required in order to foster an economic recovery.
• Focus on Wednesday moves to an address from Fed Vice Chair Clarida, ADP employment data and the quarterly refunding announcement from the U.S. Tsy. We will also hear from St. Louis Fed President Bullard ('22 voter) and see the latest ISM services survey.