A -ve tinge re: weekend news & the..........>

US TSYS: A -ve tinge re: weekend news & the disjointed restart to Chinese biz

ops generally weighed on risk in early Asia trade, 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 starting to

edge higher again. 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 +ve knock-on implications for Apple).

Uptick in virus cases aboard the Japanese ferry then put a fresh, ltd bid in.

- T-Notes -0-03+ at 131-31, off lows, yields marginally higher across the curve.

- Flow saw continued block focus on rolling out of H0 calls, into J0 downside.

10.0K of TYH0 132.25 calls were sold vs. 10.0K of the 1x2 TYJ0 130.00/129.00 put

spread, while a total of 10.0K of the USH0 165.00 calls were sold vs. 10.0K of

the 1x2 USJ0 159.00/157.00 & 10.0K of the 1x2 USJ0 158.00/156.00 put spreads.

- Eurodollar futures sit unchanged to 0.5 tick lower. Flow saw 10.K of the 2x3

EDH1 98.625/98.875 call spread sold, likely shedding existing exposure.

- Fed's Bowman, Harker & Daly are all due up on Monday.