Core FI are flying as risk appetite....>

BOND SUMMARY: Core FI are flying as risk appetite has virtually collapsed,

initially hammered by a combination of reported Saudi Arabia's launch of a

"price war," spiralling Covid-19 epidemic & North Korea's new missile tests.

Risk aversion seemed to be moderating a tad, but then staged a strong return,

though it was hard to gauge the drivers amid little new on the wires. Regional

equity mkts & U.S. equity index futs have been pummelled, with S&P 500 e-minis

5.0% circuit break triggered. T-Notes trade +1-28 at 139-25+, just off highs.

Curve has bull flattened, yields sit 20.9-31.9bp lower as we type.

- JGB futs last seen at 155.53, 89 pips better off. Bull flattening evident in

cash yield curve. The BoJ left purchase sizes unchanged at the latest round of

its 1-5 & 10-25+ Year Rinban ops. Global risk dynamics have overshadowed

below-forecast final reading of Japanese Q4 GDP. The country's gov't spokesman

said that authorities are closely monitoring mkt moves.

- Aussie bond futs have retraced an earlier pullback; YM +1.5 & XM +10.0. Yields

sit 0.1-19.7bp lower in cash trade, curve runs notably flatter. Bills last seen

3-6 ticks lower thru reds.