A relatively sedate Asia-Pac session........>

US TSYS: A relatively sedate Asia-Pac session snapped into life as China

announced a partial roll back of some U.S. tariffs, potentially in hope of some

sort of give & take deal, given questions over the viability of the purchase

sizes committed to under the phase 1 trade deal/impact of Coronavirus. U.S. Ag

Sec Perdue had already noted that the U.S. would have to be tolerant if the

coronavirus limited China's purchasing ability re: farm goods. Elsewhere, a

Global Times source noted that "China is likely considering using a term in the

phase one trade deal about "natural disaster and other unforeseeable events."

T-Notes were sold on the tariff news, breaching yesterday's session lows, last

-0-08 at 130-09+, yields 1.1-2.9bp higher across the curve.

- Elsewhere, reports noted that Buttigieg holds the slimmest of leads over

Sanders in the Democratic Party's Iowa Caucus (97% declared).

- Further position squaring via 20.0K 2x3 TYH0 130.00/131.00 call spread given

on block. Also a 10.0K block seller of TYH0 130.25 puts seen. Eurodollar futs

-0.5 to -4.5 thru reds. Fed Funds saw 20.0K worth of block sales in FFJ0/K0.

- Productivity & labour cost data & an address from Fed's Kaplan headline Thurs.