T-Notes consolidate the late risk-off.......>

US TSYS: T-Notes consolidate the late risk-off feel seen in the U.S. session,

+0-10+ at 133-24+, with the market not taking kindly to the Trump

administration's dealing with the coronavirus situation, amidst increased case

monitoring/higher case count in the U.S. and broader worry abroad. That left

contract a little shy of best levels come yesterday's close, but it went out on

the front foot as U.S. equity markets entered technical correction, with equity

futures pressured since the cash close. Curve bull steepened on the day, with

markets aggressively re-pricing chances of an FOMC cut.

- Our latest Fed exclusive noted that current and former Federal Reserve

officials see no need to respond to the coronavirus outbreak with a rate cut for

the moment, but some told MNI they are beginning to think further accommodation

will be necessary, even if only as insurance against a worst-case scenario.

Elsewhere, Fed's Evans noted that the U.S. should commit to keeping inflation

above target for periods of time following weakness & embrace extraordinary

tools like asset purchases & fwd guidance. He also stuck to the central bank's

recent mantra, i.e. too early to consider action on the back of coronavirus .