T-Notes back from their early highs,........>

US TSYS: T-Notes back from their early highs, already operating in 0-08+ range,

last +0-00+ at 131-21+, shy of the levels that the contract went out at on

Friday, as equity index futures tick higher. Coronavirus matters remain front

and centre ahead of the re-open of Chinese onshore markets today, with

policymakers trying to promote confidence in their ability to deal with the

fallout from the ever-spreading virus evident over the weekend (and highlighted

in earlier bullets).

- The short-end outperformed during Friday's rally, which resulted in some bull

steepening.

- A late FV block buy helped support Friday's rally in the belly of the curve.

- Friday's rally left 10-Year yields ~40bp below the level that they started

2020 at, with 30-Year yields having a look below, before closing bang on 2.00%.

- Chicago PMI data was particularly soft, with little to shout about in terms of

deviations vs. consensus in the latest PCE and ECI data.

- Asia-Pac trade is likely to be China-centric.