Core FI have moved away from highs.....>

BOND SUMMARY: Core FI have moved away from highs printed earlier in reaction to

horrific Chinese off'l PMIs & continued global spread of the coronavirus.

Initial risk-off moves have pulled back from extremes, with a focus on the

potential for broader central bank action. In addition, the BoJ pledged to

"provide ample liquidity & ensure stability in financial mkts" before offering

to buy Y500bn in JGB repos for future liquidity future delivery. A stronger than

Friday's PBoC fix may have added some pressure to core FI as well, while a

below-forecast Caixin M'fing PMI print provoked a fairly modest reaction.

- T-Notes trade +19+ at 135-11+. Yields last seen 5.4-13.0bp lower, with curve

running steeper. Eurodollar futs trade 6.5-14.0 ticks higher through the reds.

- JGB futures last seen at 154.21, 14 ticks above settlement. Cash yields sit

lower with the belly underperforming.

- In Australia, YM +10.0 & XM +7.0. Yields trade 5.6-12.1bp lower in cash trade,

with curve steepening evident. Bills last seen 1-22 ticks higher through the

reds. Local data has been overshadowed by broader picture developments. The

boosting of RBA easing bets ahead of tomorrow's meeting has drawn attention.