A negative tinge surrounding weekend...>

BOND SUMMARY: A negative tinge surrounding weekend news flow & the disjointed

restart to Chinese business ops generally weighed on risk in early Asia dealing,

T-Notes broke through Friday's highs, biasing yields lower at the cash re-open.

China's Coronavirus daily death toll hit a new high, with the daily increase in

cases edging higher again, but still sitting shy of the largest daily increases

that we have seen. Broader risk appetite then stabilised, before recovering on

the back of a RTRS sources piece which pointed to at least a partial restart of

Foxconn's Chinese operations (which has knock-on implications for Apple, as the

firm is one of the U.S. tech giant's major component suppliers). Uptick in virus

cases aboard the Japanese ferry put a fresh bid in.

- T-Notes -0-02 at 131-00+, off lows, yields marginally mixed.

- JGB futs were insulated from the broader noise, last +16. Some long-end vol.

crept in early afternoon trading as Rinban ops covering 10-25+ Year JGBs saw the

cover ratios jump after the BoJ reduced the number of ops covering the buckets

in Feb (to 2 from 3), although may have also been profit taking via ops.

- Aussie bonds followed broader flow, YM +2.5, XM +3.5.