Monday's Asia session has been quite...>

BOND SUMMARY: Monday's Asia session has been quite ltd, with the definite feel

of a U.S. holiday session. Focus on the Coronavirus remains evident. Increased

hope of fiscal stimulus in China, coupled with relaxed financing terms for

companies directly hindered by Coronavirus supported mainland China equity

markets, applying some weight to core global FI. The PBoC's 10bp cut to the rate

applied to its 1-Year MLF facility was welcomed, although the amount offered was

perhaps a little shy of exp. (the MLF & daily OMOs accounted for a cumulative

net drain of CNY700bn on Monday, but the PBoC's easing bias remains well and

truly intact). Elsewhere, tier 1 local data wasn't as supportive for risk, with

weak Japanese GDP data evident, stemming from the sales tax hike.

- T-Notes -0-02 at 130-29+, in a 0-04+ range. Cash Tsys closed for President's

Day holiday. Only real flow of note saw 5.0K of the TYJ0 136.00 calls given.

Eurodollar futs 0.25-2.0 ticks lower thru reds.

- Soft Japanese data supported JGBs, last +10, with the long end leading.

- Aussie bond futures were happy to hold tight ranges, with semi and corporate

issuance dominating. YM -1.5, XM -1.0. Bills +1 to -1 through the reds.