Tsys stuck to a tight range overnight,......>

US TSYS: Tsys stuck to a tight range overnight, edging back from Tuesday's

closing levels, with T-Notes virtually in line with settlement at writing after

cautious Fed rhetoric supported the space Tuesday. Mester confirmed that she

would prefer that the B/S run-off finished in '19, while Fed's Williams told

RTRS that he is "comfortable with the level U.S. interest rates are at now and

that he sees no need to raise them again unless economic growth or inflation

shifts to an unexpectedly higher gear."

- Headline flow has been light in Asia-Pacific hours, with a focus on the FOMC's

Jan meeting minutes, due later today (the press lockup has been cancelled owing

to weather conditions, but the minutes will be released as scheduled at 14:00

Eastern), and the U.S. & China trade talks, with lower level talks currently

focusing on the yuan, according to BBG reports.

- Notable flow focused on a familiar structure, with 10.0K of the TYJ9

121.50/123.50 strangle vs. TYK9 121.50 put package blocked, in a repeat of a

trade seen in Asia-Pacific hours last week..

- T-Notes last 122.07, U.S. 10-Year cash Tsy yields last 2.641%.