Coronavirus worry (spurred by an uptick.....>

US TSYS: Coronavirus worry (spurred by an uptick in Chinese case numbers & death

toll) provided a bid for the FI space in Asia-Pac trade as equities traded

heavily & T-Notes extended on their post-Fed gains, breaking through recent

highs before edging back from best levels. Contract last +0-05+ at 131-06,

yields 0.8-1.2bp lower across the curve. Worth highlighting some comments from

Peter Navarro, made late Wednesday. Navarro pushed back against the idea that

the U.S. would remove tariffs on Chinese imports if the Coronavirus impacts the

Chinese econ, noting that "the tariffs are in place because China engages in

massive unfair subsidies. They use their SOEs to put U.S. companies & workers

out of business. And the tariffs also ensure that we come back for phase two."

- Flow-wise small to moderate buying interest was seen in TYH0 132.25 & 133.00

calls overnight.

- Eurodollar futures print unchanged to 2.5 ticks higher through the reds. Also

worth flagging a block trade in Fed Fund futures, which seemingly saw 50.K FFG0

sold vs. 25.0K FFJ0.

- U.S. GDP headlines the local docket on Thursday.