PM trade saw JGBs futures bid on the broader...>

JGBS: PM trade saw JGBs futures bid on the broader risk-aversion, after a double

bottom in morning trade. Solid 20-Year supply saw the cover ratio edge higher,

tail narrow and low price top dealer exp., as proxied by the BBG poll.

Domestically, the first 2 deaths were seen on the back of the Coronavirus

outbreak aboard the Diamond Princess (both were Japanese nationals in their

80s). Curve twist flattened on the day, with the long end outperforming all day.

- Contract then faded into the close, finishing -8, off lows.

- Foreign investors' purchases of Japanese paper moderated to Y370.6bn in the

most recent week, per the weekly international security flow data. Still, this

represented a 4th consecutive week of net purchases, which pushed the 4-week

rolling sum to the highest levels seen since December 2018.

- Elsewhere, Japanese FinMin Aso suggested that there was no reason to revise

the country's FY20 budget plan over Coronavirus.

- Final machine tool orders data for Jan was in line with the soft flash

reading.

- CPI, flash PMIs & BoJ 1-10 Year Rinban ops headline tomorrow.