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Headline flow was mixed during Asia....>

BOND SUMMARY
BOND SUMMARY: Headline flow was mixed during Asia hours, in terms of impact on
risk sentiment. The latest uptick in Coronavrius cases/deaths, as well as the
U.S. raising the warning level re: citizen travel to China i.e. not to travel to
China, dented risk appetite, while the Chinese PMIs & the Senate seemingly being
on track to acquit President Trump re: impeachment, assuaged some of the worry.
- This leaves T-Notes off of overnight session lows, but still -0-09+ ticks
lower than settlement at 131-00+, curve has twist flattened. Flow wise, 1x2 TY &
US put spread expressions were lifted across several blocks.
- JGB futures filled the opening gap lower then meandered along within their
early session range, last +7. Curve has twist steepened, with the long end under
pressure, likely owing to fairly limited month-end extension flows. Local data
was mixed when released earlier.
- Australian bonds took their impetus from the broader risk backdrop, which
leaves YM & XM 0.5 tick below their respective settlement levels at writing. The
AOFM's weekly issuance schedule revealed that a A$2.5bn tap of ACGB 2032 1.25%
21 May 2032 is scheduled for Wednesday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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