Spreading coronavirus has..............>

BOND SUMMARY: Spreading coronavirus has overshadowed pretty much everything

else. Core FI have drawn support from broader aversion toward riskier assets,

inspired by rising Covid-19 case counts across the globe. South Korea's numbers

drew attention today as the number of patients exceeded 1,000.

- T-Notes have crept higher & last seen -0-04 at 133-00 with yields trading

1.2-2.3bp lower in cash trade. Curve runs a touch steeper. Eurodollars sit

0.75-1.5 tick lower through the reds. Fed's Clarida & Kaplan pushed back against

the need for an imminent rate cut from the Fed in the wake of the outbreak.

- JGB futures have gyrated & last trade at 153.51, just 3 pips above settlement.

Cash yields are mostly mixed, with the super-long end slightly outperforming. As

a reminder, there is a 15.5-39 Year JGB liquidity enhancement auction scheduled

for later today.

- In Australia, YM +2.5 & XM +1.5. Yields have ticked away from worst levels &

sit 1.6-2.5bp lower across the curve. Bills last seen 2-4 ticks higher through

the reds. Little reaction noted to a pretty horrific completed construction work

reading out of Australia, which got Q4 partials underway on a softer note.