Apple's profit warning is providing some....>

US TSYS: Apple's profit warning is providing some support for T-Notes in early

Asia-Pac trade in the wake of a limited, shortened President's Day session for

futures, with the contract trading through Monday's highs after going out just

shy of best levels. Contract last +0-03+ at 131-03.

- A focus on Chinese fiscal matters provided some pressure in early dealing this

week, but the moves were limited and unwound. A reminder that although the PBoC

delivered a 10bp cut to the rate applied to its MLF ahead of Thursday's LPR

fixing, the net CNY700bn withdrawal of cash on Monday was a little larger than

most expected i.e. a bigger drain of liquidity vs. exp.

- Monday also saw some negative trade/Huawei source reports, as the WSJ & RTRS

pointed to the potential for the Trump Admin to levy some restrictions on the

semiconductor sector.

- Worth noting that Hubei province's daily Coronavirus death count has fallen

back below 100, focus now moves to the national Chinese numbers.