Risk sentiment was dented by the increase...>

US TSYS: Risk sentiment was dented by the increase in worry afforded to the

Chinese Coronavirus issue (with a 4th death declared in China on Tuesday, as

well as a potential spread of the virus to Australia), seemingly culminating in

a notable mkt reaction when Chinese equity futures re-opened today. Elsewhere,

U.S. President Trump pointed to bringing "good Policy & additional Hundreds of

Billions of Dollars" back to the USA ahead of his address in Davos later today,

although this comes after a (short-term) de-escalation in U.S./EU trade

tensions, centring on the proposed digital tax matters. T-Notes sharply bid,

last +0-11+ at 129-13, 0-02+ off highs, with the cash curve bull flattening.

- One pronounced spurt of lifting in Asia saw > 14.0K lots of TYH0 bought in a

1-min period, pushing 10-Year yields < 1.80%. Elsewhere, we saw a screen buyer

of low delta TY calls, as ~11.0K TYH0 133.50 calls were lifted at 0-01.

- Eurodollar futures +0.5-4.5 ticks through the reds.

- In addition to the aforementioned Davos address from President Trump,

impeachment matters continue to garner interest, with existing home sales, FHFA

house prices, MBA mortgage apps & Chicago Fed activity data all due Tuesday.