Overnight news that Japan had eased....>

BOND SUMMARY: Overnight news that Japan had eased liquidity (as flagged in

advance by an MNI policy story) helped risk recover somewhat overnight. However,

shortly after the European open markets reversed and began moving higher once

again. At the time of writing 10y UST yields in the US are down 7.5bp, Bund

yields down 3.2bp and gilt yields down 5.9bp.

- UST 10y yields hit another record low of 1.0283% in early Asian trading, but

have moved up to 1.0686% at time of writing. 2y UST yields moved to their lowest

level since November 2016.

- UK 10y gilt yields have traded through their lowest ever closing level but are

4.5bp above their record intraday low of 0.339% hit in September 2019.

- European and UK PMI data have largely been ignored, with the survey period

before the escalation of coronavirus cases in Northern Italy. The US ISM

manufacturing survey will be released later with the survey period covering the

"first part of the month" so may not pick up all coronavirus impacts.

- TY1 futures are up 0-19 today at 135-11 with Bund futures up 0.50 at 177.96

and Gilt futures up 0.61 at 136.01.