T-Notes -0-01 at 130-18+, drawing support...>

US TSYS: T-Notes -0-01 at 130-18+, drawing support from a CNBC headline noting

that the "White House tells airlines it may suspend all China-US flights amid

coronavirus outbreak."

- Contract snapped back from London peak on Tuesday, as market started to

question how much of a systemic issue the Coronavirus is. Push higher in London

hours came on the back of Hong Kong outlining measures to protect itself from

Coronavirus, with the move extending on hedging owing to a break of 131-00 in TY

(short TY 131.00 call positions were previously highlighted), with 10-Year

yields bottoming out around ~1.57%. Yields were 3.5-5.5bp cheaper across the

curve come the close. The bounce in domestic equities then started gathering

pace, allowing the curve to steepen. FV/WN steepener block added to the impetus,

with a sub-par 7-Year note auction also seen. Screen trade saw a recently

established TYH0 130.75 straddle position added to. Further late pressure into

the close on the back of strong earnings numbers from Apple, which saw the tech

giant trade higher after hours.

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