JGB futs finished +20, 5 shy of best levels,...>

JGBS: JGB futs finished +20, 5 shy of best levels, with a 2nd consecutive strong

round of 5-Year JGB issuance noted, which allowed the belly of the curve to play

catch up (at least to some degree) in the afternoon session, in the wake of some

pre-supply underperformance. The strength of the auction was particularly

noteworthy on the back of last month's supply, and the fact that it was

conducted at slightly richer levels. The cover ratio firmed ever so marginally

(although was virtually unch.), % allotted at high yield dipped, low price just

topped dealer exp. & tail was narrow (last month's auction had no tail).

- Bull flattening the theme on the curve, with swaps generally trading tighter.

- Japanese FinMin Aso attempted to bolster confidence by noting that the

Japanese economy has fairly solid fundamentals, despite yesterday's soft Q4

prelim GDP print, although he did tip his hat to uncertainty re: Coronavirus.

- Elsewhere, officals pointed to the Princess Diamond ferry being emptied by Feb

21, with all of those on-board having the relevant samples taken as of now.

- Tomorrow sees trade balance & core machine orders data, and 12-Month supply.