Regional dip buyers seemingly..........>

BOND SUMMARY: Regional dip buyers seemingly supported Tsys in Asia-Pac hours,

with little in terms of tier 1 risk headlines evident. Worth flagging that

Caixin services & composite PMI data was soft, a particular source of worry

given that the survey cut off was 22 Jan, before the worries re: Coronavirus

became elevated/deeper set. T-Notes +0-05 as result, yields 1.4-1.6bp softer.

- Australia bonds struggled on the latest comments from RBA Gov. Lowe, as many

suggested that he pointed to a higher bar for further easing. I would suggest

that he was perhaps a little more balanced than the initial headlines read,

albeit maintaining the RBA's glass half-full approach ahead of Friday's SoMP &

semi-annual testimony. YM -10.0, XM -11.0. Bills 5-10 ticks lower through the

reds. The inaugural tap of ACGB 1.25 May '32 was on the softer side, as the

cover ratio eased & % allotted at high yield jumped vs. initial offering.

- JGB futs 17 ticks lower, but off lows. Bears filled the gap that was seen

after Thursday's lunch break, even after BoJ Dep. Gov. Wakatabe sounded a little

more concerned re: the Coronavirus outbreak, following in the footsteps of Gov.

Kuroda yesterday. Curve bear steepened, eyes on tomorrow's 30-Year supply.