Coronavirus developments retain the....>

BOND SUMMARY: Coronavirus developments retain the spotlight. Participants have

scrutinised a piece by Chinese FinMin, published over the weekend in the

Communist Party's flagship magazine, which promised the implementation of

"phased and measured" reductions of taxes and fees, coupled with cuts to

unnecessary expenditures. Elsewhere, a Wuhan hospital off'l struck a positive

note re: containing Covid-19 spread.

- Cross-currents from China have failed to halt a rally in JGB futures, but may

have limited it somewhat. The paper picked up a bid after the release of pretty

grim flash GDP readings for Q4 out of Japan. The local economy contracted 1.6%

Q/Q, at a faster pace than expected. JGB futs last sit at 152.58, 9 ticks above

neutral levels & off earlier highs. Yield curve runs flatter. Japan is yet to

report its final industrial output for December later today.

- In Oz, YM -0.5 & XM -0.5. Cash yields trade 0.3-0.7bp higher across the curve.

Bills last seen -1 to +1 tick through the reds.

- T-Notes trade -0-03 at 130-28+. Eurodollars last seen -0.5 to -2.0 ticks

through the reds. Cash Tsys are closed due to a public holiday in the U.S.