Combine wine, vinegar, shallot, and tarragon in a small saucepan and bring to a boil; cook until liquid is reduced to about 2 tablespoons. Strain and set aside.
Whisk egg yolks with water and salt in a medium-size glass or stainless steel bowl. Place bowl over (but not in) a large saucepan of simmering water and whisk until warm.
Slowly add the warm butter, a tablespoon or so at a time, whisking constantly until butter is incorporated. Continue whisking until all butter is incorporated and sauce is thickened. Whisk in reduced vinegar mixture and TABASCO® Sauce and serve immediately.
Makes about 1 cup.
To make Choron Sauce, whisk in 2 teaspoons tomato paste when adding the TABASCO® Sauce.