T-Notes -0-02+ at 131-04, yields curve......>

US TSYS: T-Notes -0-02+ at 131-04, yields curve twist flattening, with light

underperformance in front end. U.S. equity futures have built on Tuesday's

recovery, with NASDAQ 100 futures filling their gap. Slight moderation in the

daily new Chinese Coronavirus case count & continued recovery of infected

patients helping to soothe fears for the most part (negating the uptick in the

daily death toll, from a market perspective). There was some worry over the

uptick in virus cases in South Korea, which saw a limited bid in Tsys at one

point. A couple of pockets of selling have shown up over the last couple of

hours. That came after some limited screen selling in TYJ0 129.50 puts & decent

early activity in the TYH0 130.25 puts, with the latter seeing over 10.0K change

hands at 0-01. See earlier bullet for commentary re: latest TIC flow data.

- Eurodollar futures sit 0.5-2.0 ticks lower through the reds, with a couple of

sell programmes noted there in the last couple of hours. Highlights being

sellers of EDM0 and EDM1, after and earlier paper buyer in EDH0.

- Fed meeting mins, building perms, housing starts & PPI data headline the

docket. A raft of Fedspeak due from Bostic, Barkin, Kashkari, Mester & Kaplan.