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T-Notes 0-05 lower at 129-13+ after....>

BOND SUMMARY: T-Notes 0-05 lower at 129-13+ after S&P 500 futs registered fresh
all time highs in Asia. A press conference from China's National Health
Commission, outlining the current Coronavirus situation & preventative measures
in play took the edge off fears (for now), with a lack of overt worry evident.
Belly of the curve underperforms in cash trade. Flow wise, focus fell on the
block sale of some calls across different expressions, a regional theme of late.
TYJ0 131.00 calls were sold vs. buying of the TYJ0 128.00/127.00 put spread,
with the USJ0 154.00/161.00 risk reversal also trading, buying puts to sell
calls. Eurodollar futs -0.5 to 2.5 ticks through reds, some steepening evident.
- JGB futures held a tight range, last +4 after recovering from their early
afternoon lows, potentially aided by tighter spreads & uptick in the cover ratio
in the latest 5-15.5 Year liquidity enhancement auction for off the run paper.
- Aussie bonds were bid, aided by the well supported opening of ACGB 1.25% 21
May 2032. There was also some focus on an AFR article titled "Government's debt
manager readies for QE," although the content was less punchy than the headline.
YM +3.5, XM +4.0. Bills unchanged to +3 through the reds.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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