Mkts continued to discount global......>

US TSY FLOWS: Mkts continued to discount global risk tied to spread of novel

coronavirus: strong risk on again with Tsys selling off for second day (10YY

1.6526 +.0534; 30YY 2.1371% +.0602), equities nearly back to January all-time

highs (eminis 3335.0 +35.5)

- Rates opened weaker but off lows after headlines re: WHO spokesperson said no

breakthrough treatment for novel coronavirus as yet -- at odds with earlier

China media reports discovery of "effective drug" to treat virus hit wires

around 0320ET, spurring sharp risk-on move. 30YY currently 2.0952% +0.184 vs.

2.0491% low.

- Extended lows prior to ADP and continues to slide after much better than

expected gain of 291k. Est's for Fri's NFP gained slightly to +163k from +160k. 

- Sources reported 2s10s steepener interest, selling bill, cash 10s earlier,

fast/real$ sellers intermediates, prop and swap acct buying lows. Two-way

deal-tied flow as corp issuance continued apace.

- The 2-Yr yield is up 3.2bps at 1.4411%, 5-Yr is up 4.1bps at 1.4598%, 10-Yr is

up 5.2bps at 1.6508%, and 30-Yr is up 6bps at 2.1371%.