Core FI supported by an uninspiring.........>

US TSYS: Core FI supported by an uninspiring address from U.S. President Trump

overnight, with a new coronavirus case declared in the U.S., which holds an

unknown origin adding to worry, while numbers in South Korea edged higher again

(though the daily death toll in China moderated). Pressure on U.S. equity index

futures also evident. T-Notes traded through recent highs, last +0-04+ at

133-14+, a touch off bests, reversing the late NY dip and more. 10-Year Tsy

yields registered a fresh all-time low in overnight trade, with the curve bull

steepening in the main, although the belly now outperforms at the margin. Recent

commentary from a PBoC Dep Gov pointing to targeted RRR cuts when the time is

right also helping recently, although this was widely expected at some point.

- TYJ0 134.25 calls saw 5.0K lifted on block overnight, with a deep in the money

USJ0 call also lifted on block (potentially short cover & delta hedged). We also

saw a TU/FV flattener, another similar trade lodged in Asia earlier this week.

- Eurodollar futures sit +2.0-3.5 ticks through the reds, with option flow

dominated by an unwind of existing positions on block. Elsewhere, FFJ0K0 saw

decent activity via blocks with 16.0K lots trading over several clips (lifted).