Although coronavirus reports...........>

BOND SUMMARY: Although coronavirus reports continue to draw attention, core FI

took a modest hit as China's official PMI readings provided some fresh support

to risk appetite. The survey revealed an inline m'fing reading accompanied by a

better than forecast non-m'fing print, although the NBS noted that the surveys

were conducted before January 20, so pre-LNY and before Coronavirus worry

escalated. T-Notes trade -0-07 at 131-07. The paper has just posted a leg higher

as the U.S. issued lvl 4 advisory not to travel to China. Yields sit marginally

lower. Eurodollar futures are 1.5-3.5 ticks lower through the reds.

- JGB futures have inched higher and trade at 152.86, 9 ticks above settlement.

A degree of twist steepening has crept into the yield curve. The local data was

mixed, with better than expected industrial output & unemployment coupled with

less inspiring Tokyo CPI and retail sales.

- In Australia, YM +1.0 & XM +0.5; yields operate marginally lower in cash

trade. Bills last seen unch. to -1 tick through the reds. Australian PPI

decelerated in Q4, while private sector credit stayed unchanged, broadly in line

with exp. The AOFM released their weekly issuance schedule (see prev. bullets).