Risk aversion has taken hold lately,...>

BOND SUMMARY: Risk aversion has taken hold lately, propping up core FI. There

was no single, clear headline catalyst, but a combination of a semi-combative

tweet from U.S. Pres Trump & a lower open for Chinese equities may have done the

job. In China, a worry re: new coronavirus is coming to the fore, amid potential

for further spread due to intensified travelling activity during LNY holidays.

- T-Notes trade +0-11 at 129-12+, just shy of highs. Yield curve runs flatter &

has shifted lower. Eurodollars last seen 0.5-4.5 ticks higher through the reds.

The impeachment proceedings against U.S. Pres Trump kick off today, but the

POTUS will be attending the WEF in Davos.

- JGB futs have rallied and operate at 152.15, 21 ticks above settlement, when

this is being written. Cash yields trade lower across a flatter curve. The BoJ's

monetary policy decision is the main highlight today, there is no fixed

announcement time.

- Aussie bond futs have bounced off lows; YM +0.5 & XM +1.0. Some marginal bull

flattening has crept into the yield curve. Bills last trade unch. to +1 tick

through the reds.