T-Notes drew support from regional.....>

BOND SUMMARY: T-Notes drew support from regional worry surrounding the

Coronavirus in Asia-Pac hours, with a firmer JPY & heavy Chinese equities eyed.

Contract +0-05 at 129-22+, best levels of the day. Yields 1.6-2.2bp lower across

curve, light bull flattening in play.

- Aussie Bonds saw bulls relinquish early control on the back of a strong

domestic labour mkt report. Headline job additions surpassed exp. (although full

time employment fell marginally), facilitating a downtick in the unemployment

rate as participation held steady. Market pricing re: a Feb cut from the RBA

fell to 25% vs. 55% yesterday, with the likes of CBA, ANZ, UBS & Nomura pushing

back their easing calls from Feb. YM drove the move, as you would exp., last

-4.0, with XM unch. Early bull flattening flipped to bear flattening, and

extended. Bills down 3-7 ticks through reds, front end underperforms.

- JGB futs were supported by the broader risk aversion early on, with JPY

crosses lower & the Nikkei 225 defensive. A second round of support came from

tighter spreads & lower offer/cover ratios in the BoJ's latest round of 5-25+

Year Rinban ops. Contract last +20, 4 off highs, curve has bull flattened.