Continued risk aversion surrounding....>

BOND SUMMARY: Continued risk aversion surrounding what feels like the

ever-spreading coronavirus situation across the Asia-Pac region pushed 10-Year

Tsy yields below 1.50% for the first time since September, even with Chinese

officials talking up economic resilience (highlighting near term headwinds) and

speeding up the study of fiscal measures to deal with the fallout surrounding

the virus. T-Notes +0-06+ at 131-20+, just shy of best levels as we type. Bull

flattening the theme in cash trade, yields 1.2-2.3bp lower across the curve.

Eurodollar futures are unchanged to 2.5 ticks higher.

- Soft Japanese PMI data was coupled with in line with exp. CPI prints, that

were little changed vs. Dec. The soft PMI readings and the breakdown of the

BoJ's latest round of 1-10 Year Rinban ops (which saw tighter spreads and lower

offer/cover ratios) supported the space, with new highs made in afternoon trade.

Futures last +21, curve has twist flattened.

- Aussie bonds struggled to extend through the overnight highs, despite series

low readings for both the flash CBA services & composite PMIs, but were

underpinned by the broader feel of risk aversion. YM +3.0, XM +4.5.