Tight Overnight

The lack of fresh material from the FOMC and continued fiscal impasse in
DC has resulted in a stale Asia-Pac session for Tsys, with cash yields
sitting 0.2-073bp richer across the curve. T-Notes +0-01+ at 139-25+,
sticking to a 0-02 range thus far. On the flow front, we saw a seller of
USV0 calls vs. buying a USV0 put spread via block for a second
consecutive session.

• JGB futures were lower from the off, but held a tight range, with short
  end outperformance working its way into cash trade. The latest
  round of 2-Year supply passed without any real headwinds, but was
  the definition of average.
• Little of any real note for Aussie bond futures, with a lack of
  noteworthy revelations from the CEO of the AOFM in his latest
  update, while local data and comments from the Treasury provided
  no real impetus. This allowed some light flattening to creep in, with
  YM unchanged, and XM +1.0, although the latter lacked any real impetus.