Quiet re-open for T-Notes, -0-01+ at........>

US TSYS: Quiet re-open for T-Notes, -0-01+ at 131-05. Concern re: Apple provided

a bid for space Tuesday, although 10s & 30s failed to close below recent lows in

yield terms. Bull flattening was the theme of the day, even as the space moved

off extremes, first dip on the back of a strong Empire m'fing survey, before a

run back towards best levels, with a 2nd fade ahead of the close as U.S. equity

markets moved away from lows. Later flow saw various accounts selling in the

belly & long end. Option flow favoured buying low delta, upside call insurance.

- Fed's Kaplan told MNI he prefers holding interest rates steady this year if

coronavirus disruptions are transitory & confined to the early months of '20.

"There's a scenario that this would turn out to be a Q1 & Q2 event and much of

the effect will reverse later in the year."

- Worth flagging that the Nikkei has recently reported that "Apple will likely

miss its schedule for mass producing a more affordable iPhone, while inventories

of existing models could remain low until April or longer." Elsewhere, Boeing is

seemingly running into further problems re: its 737 MAX.

- Eurodollar futures print unchanged to 0.5 tick lower through the reds.