Generally muted start to the week......>

US TSY FLOWS: Generally muted start to the week with no data to react to. Modest

bid for Tsys gained traction as session wore with novel coronavirus spd ongoing

theme. 

- Markets extended highs after midday on Reuters headline: "GERMANY REPORTS

OUTBREAK OF HIGHLY PATHOGENIC H5N8 BIRD FLU". While supportive, rates less

likely to rally on epidemic news, while risk-on moves more sharp/sudden on

perceived good news.

- Despite virus headlines, equities strong in late trade (S&Ps +20.0, just off

last week's highs), Gold gained 2.20, West Terxas crude slipped -.78.

- Mixed flow w/better buying in 10s and 30s, deal-tied hedging across the curve

(BoA issued $5B 2-part debt). Gradual pick-up in Mar/Jun Tsy futures rolling.

Heavy Eurodollar and Tsy option volume.

- The 2-Yr yield is down 2.4bps at 1.3769%, 5-Yr is down 3.6bps at 1.3684%,

10-Yr is down 3.4bps at 1.5491%, and 30-Yr is down 2.4bps at 2.0248%.