Waiting For Powell

T-Notes coiled in Asia-Pac trade, in typical pre-FOMC decision setup for the timezone, last dealing unch. at 137-12. The modest bear steepening seen after the re-open was unwound with cash Tsys now hovering around unchanged levels across the curve. Eurodollar futures are unchanged through the reds, with volume there particularly light. Flow has been dominated by the now familiar TYJ1 risk reversal block trade (with another 10K of TYJ1 133.50 puts lifted against TYJ1 138.00 calls), which was followed up by 2.0K of screen activity in the strategy, which was in the same direction.

• A reminder that Tuesday also provided rangebound pre-FOMC trade, with some suggesting that widely aired internet issues for the U.S. east coast, based on an issue in the Brooklyn area of New York, may have limited participation. NY flow was headlined by a 3.0K block seller of USH1. Cash Tsy yields were little changed come the bell. The latest 5-Year auction stopped through WI by 0.2bp, while the cover ratio was ever so slightly below the recent average, with indirect participation nudging higher at the expense of direct participation.
• The aforementioned FOMC decision headlines the local docket on Wednesday (see our preview for more on that), while prelim. durable goods data and 2-Year FRN supply is also due.