Core FI have picked up a bid as........>

BOND SUMMARY: Core FI have picked up a bid as Apple said that the Covid-19

outbreak may prevent it from meeting its Q1 revenue guidance, fuelling concerns

over the economic fallout from the epidemic. Selling pressure hit global equity

markets as Apple's warning has took its toll on the company's suppliers. To a

lesser extent perhaps, but WSJ & RTRS reports re: potential new U.S.

restrictions on Huawei have also been a source of worry.

- T-Notes trade +0-07 at 131-06+, just shy of highs. Yields sit 1.8-3.4bp lower,

curve runs flatter as cash trade re-opened after a holiday. Eurodollars sit -0.5

to +2.5 ticks through the reds.

- JGB futures have rallied & last sit at 152.69, 11 ticks above settlement. Cash

yield curve has bull flattened. There's 5-Year JGB supply coming up today.

- In Oz, YM +1.5 & XM +2.0. Yields sit 1.7-2.0bp lower in cash trade, with

modest curve flattening apparent. Bills last seen 1-3 ticks higher through the

reds. Little if note seen in the RBA's Feb meeting minutes, but worth

highlighting that members discussed the risk that Covid-19 poses to the economy,

which they deemed to be "material."