Worry surrounding the first USD/CNY fix.....>

US TSYS: Worry surrounding the first USD/CNY fix after mainland China's Labour

Day holidays, coupled with USD/JPY breaking below last week's low, built on the

negative momentum for U.S. equities that was seen into the NY close (largely

attributed to the commentary provided by Fed Vice Chair Clarida), weighing on

e-minis in early Asia-Pac trade. However, the USD/CNY fix failed to generate the

fireworks that many feared, which allowed equity futures to recover from worst

levels, while T-Notes were happy to hold a tight range, with the cash space

closed in Asia hours, owing to the final day of the Japanese Golden Week

holidays. Activity was generally light, with T-Notes last -0-06 at 138-21+,

pressing fresh lows, on volume of ~22K ahead of European hours.

- Eurodollar futures +1.0 to -0.5 through the reds, twist steepening through

that section of the curve.

- Quarterly refunding announcement eyed today. A reminder that participants have

pointed to this event, plus a relatively heavy start to the week for $ IG

issuance, as the drivers behind the steepening seen over the past couple of

sessions. We also get ADP labour market data & Fedspeak from Bostic & Barkin.